strategic payments roadmap for ghana · initiatives 15 2.2.1. setting up a ghanaian payments...
TRANSCRIPT
Strategic Payments Roadmap for
Ghana
Prepared for Bank of Ghana
March 2014
1
Table of Contents
Contents
1.
Introduction 8
2.
Laying the Foundation 14
2.1. Introduction 14
2.2. Initiatives 15
2.2.1. Setting up a Ghanaian Payments Council 15
2.2.2. MFS Circular (Addendum to BB circular of 2008) 18
2.2.3. Pricing caps and display circular 19
2.2.4. Implement POS and acceptance guidelines 20
2.2.5. Enable TSA regime 21
2.2.6. Publish and maintain Cost of Cash index 22
2.2.7. Publish Payments newsletters 23
2.2.8. Pursue security certification to improve trust 23
2.2.9. Define a comprehensive stakeholder communication plan 24
2.2.10. Enable fraud and misuse reporting 26
2.2.11. Reach out to National Communications Authority for telco infrastructure 27
2.2.12. Stronger engagement with Ministry of Finance etc to secure buy-in 28
2.2.13. ePayments regulation / code 28
2.2.14. eMoney regulation 29
3.
Making Better Use of What is Already There 31
3.1. Introduction 31
3.2. Initiatives 32
3.2.1. Reinvigorate mobile payments 32
3.2.2. Provide value added services on current schemes 34
3.2.3. Ensure all employees paid electronically 35
3.2.4. Other e-government initiatives 36
3.2.5. Develop and roll-out a hybrid or mobile Point Of Sale (M-POS) capability 37
3.2.6. POS deal negotiation (Dual readers including Contactless?) 39
3.2.7. ATM switching & Activity Monitoring 40
3.2.8. Supporting laws as per World Bank guidelines 40
3.2.9. E-payment only threshold 42
2
4.
Building for the Future 43
4.1. Introduction 43
4.2. Initiatives 43
4.2.1. Launch instant payment scheme 43
4.2.2. Enable a bill pay scheme and supporting infrastructure 44
4.2.3. Host anti-fraud solution at GhIPSS 45
4.2.4. Enable a collaborative e-commerce payment method (e.g. iDeal / MyBank) 45
4.2.5. Implement penal pricing for cash & paper (Cashless Policy) 46
4.2.6. Launch direct debit scheme 48
4.2.7. Launch a multi-function Ghana card 48
4.2.8. EMV Cards 49
4.2.9. Participate in West African interlinking of EFTPOS/ATM switches 50
4.2.10. Participate in West African RTGS payment interlinking 51
4.2.11. Recapitalize and commercialize GhIPSS stake in tranches in favour of banks 52
5.
Innovation for 2019 and beyond 53
5.1. Introduction 53
5.2. Initiatives 53
5.2.1. Multi-currency payments on mobile 53
5.2.2. IBAN / Numbering 53
5.2.3. Enable NFC payments 54
5.2.4. Account switching 55
5.2.5. ISO 20022 55
5.2.6. Separation of Scheme from Infrastructure 56
6.
A Strategic Roadmap 57
6.1. Introduction 57
6.2. Quick wins by classification 60
6.3. Roadmap by timescale 62
Appendix 1: Methodology 65
Appendix 2: Abbreviations and Acronyms 66
Appendix 3: References 70
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Strategic Payments Roadmap for Ghana
“The promotion of a cash-lite economy is a collective responsibility of all stakeholders involved in the
development of the payments eco-system.
This will require appropriate policies that promote investment and innovation as well as smart plans
from both the private and public sectors.
These, together with technical and financial support from development partners will unleash the full
potential of this country to enhance its overall development.”
Mr. Millison Narh, Deputy Governor, Bank of Ghana
Acknowledgements
We thank The Bank of Ghana and Ghana Interbank Payment and Settlement Systems Limited
(GhIPSS) for their cooperation in completing this report on a future roadmap for the country to 2019
and beyond.
We also thank the other stakeholders, namely the Banks, Telcos, Retailers, Corporate businesses,
and the Ghanaian Treasury for their valuable input and opinion in attending the June and December
2013 workshops and in completing the questionnaires, which alongside peer country experience have
been instrumental in shaping the report.
Finally, we must acknowledge Capgemini for playing a very important role in this project and in the
preparation of this report and the accompanying presentation deck.
Note - This report is supported by a separate detailed presentation deck as used in the December
workshops and other presentations and sources of data are also available should the reader wish to
read further.
4
Executive Summary
In summary, Ghana has the core payment systems infrastructure in place such as RTGS, ACH, ATM
and POS switches and cheque processing systems. It also has Mobile money capabilities through
Telco providers such as MTN and Airtel, Mobile which follow established practice similar to those in
countries such as Kenya and Tanzania. However cash is still very much the preferred means of
payment and yet we see cheque volumes increasing which should in fact be ACH transactions. POS
acceptance and hence cards usage is low.
These systems provide a foundation on which further enhancements and payment services can be
built to achieve the twin goals of a cash-lite economy and greater financial inclusion however the
fundamental issue is that payment systems in serving all stakeholders from consumers to the
government itself has not been subject to collective consultation and decision making by the same
cross-section of stakeholders. The result is that the benefits of electronic payments are not always
fully understood and thus do not get the ‘buy in’ of the stakeholders and consumers involved in the
usage of the services.
It is therefore fundamental that a suitable governance structure is formalised and that working groups
are created to particularly address specific focus areas under the umbrella of a Ghanaian Payments
council. In fact this was one area where there was a unanimous response by the survey group.
The brief of the payments council would be structured to cover matters such as standards, pricing,
determining priorities, scheme rules and legal drafting. The new initiatives would be managed by
working groups who are responsible for delivering the end to end roll out of any new initiative. It must
be noted, however, that these groups need to be sufficiently staffed and managed to meet their
commitments according to established project management principles. At present there is the risk of
the infrastructure being ready before stakeholders fully understand what it means to them and what is
required to implement.
Additionally, alongside the payments council there needs to be effective regulation and penalties for
non-compliance with any payments council directive. Clearly this needs a legal underpinning to be
effective.
We have heard of cases where for example a corporate can circumvent a limit for writing cheques by
writing several lower value cheques, or of delays in posting payments to a customer account to
benefit from float, or high merchant service fees for card payments all of which do not support a
change in payments behaviour. It is recommended therefore that there is greater transparency in
pricing and that the payments council consider pricing caps and general principles to be adopted in
pricing e.g. processing a debit card should be no more than a cheque(and ideally less) and domestic
cheque pricing be based on a flat fee rather than ad-valorem. Furthermore, as with the EU Payment
services directive, D+1 should be considered for payments as the time between a debit being applied
to the originator’s account and the credit being posted to that of the beneficiary.
We did compare the wholesale pricing of payments in terms of what GhIPSS charge banks and found
that fees were in line with other peer countries but bank customer fees did appear to have a high
markup.
Not surprisingly feedback from bank customers indicated that bank fees were too high yet the banks
felt that they were at the right level. Nevertheless this is certainly a topic to be discussed at the
payments council as to what is and what isn’t a reasonable fee and margin based on processing
payments.
‘Incentives’ should also be applied to encourage different behaviour in terms of a reduction of fees, a
fee surcharge or a form of loyalty scheme depending on the desired outcome. In this sense, payment
5
made to the RTGS could be at a lower fee depending on the time of day as in India to flatten intraday
liquidity ‘spikes’ or penal fees applied for cash collections over a certain limit as in Nigeria. We have
also recommended that a cost of cash index is maintained to communicate the true cost of cash to
support further the value of electronic payments.
Kenya’s MPESA is well known as a great success especially in terms of greater financial inclusion
and similar initiatives in Ghana have the potential to be equally successful in achieving that objective.
However the growth has been slow. The view of Telcos in Ghana is that the principal issue is not that
of awareness but of education. If consumers are able to see how easy it is to use this service through
hands on experience and demonstrations and as a result understand the convenience and security it
brings, greater usage would ensue. Peer experience is to be encouraged and marketing campaigns
could perhaps use well known public figures in TV and newspaper advertising.
Lack of Education, banking facilities for the unbanked/illiterate and lack of trust in e-payments were
the principal barriers to a drive from cash and greater financial inclusion. A mobile money agenda is
seen as a critical element in the Ghana payments strategy.
A greater perhaps loosely coupled relationship between the national telecommunications agency and
the Bank of Ghana is essential, and all forms of mobile payments should be subject to BoG approval
with respect to Payment services provision as well as the NCA. Financial and non-financial (i.e.
airtime) transactions should also be segregated to keep a clear dividing line between m-money and
traditional Telco billing. BoG announced at the December meeting that this legislation was currently
being drafted and would be in place in early 2014.
The report also recommends that all activities by BoG be publicised and as is good advertising
practice, the communications should be consistent and continual around any specific campaigns. A
Payments council newsletter is recommended as one such vehicle and we believe that the more that
usage is endorsed by trusted parties or peer groups, the more interest and usage will be the result.
The next step is to make better usage of what is already available. There are two parts to this; One is
in terms of re-launching and invigorating current services through specific campaigns such as re-
launching mobile payments using education and publicity on the benefits such as convenience and
security. The other is to provide value added services and improve penetration of e-payments
acceptance and the usage of e-payments.
BoG have also considered purchasing POS terminals to encourage points of acceptance but it is
fundamental that should this proceed, such terminals would need to be ‘future proofed’ by supporting
mobile P2P type payments. The market ‘charcoal seller’ is a case in point where a mobile P2P
payments capability would apply without the need for an traditional POS. Feedback was mixed with
regard to negotiating pricing for POS terminals with suppliers to obtain bulk discounts but the
experience of Nigeria suggests that this makes commercial sense.
As an example of making better use of what is there already we believe that direct corporate access
to the ACH under the sponsorship of their relationship bank will be beneficial in terms of easier
payment of salaries and would allow smaller banks to have access to central clearing under an
agency arrangement. Several software suppliers could provide this and GhIPSS could operate a
service bureau. This would avoid the practice of a large employer making RTGS payments and banks
having to manually post salaries to the appropriate account.
The next stage would be to bring in new capabilities that form the basis for the future where the world
is moving rapidly to real time, instant everything and the choice for any payment method at any time
and any location is provided i.e. complete flexibility. These points are discussed further in the World
Payments Report 2013 by Capgemini and RBS as are the trends for payments to reflect better in the
end to end businesses of corporate industry, merchants and consumer lifestyle. This also brings in an
6
additional focus on online internet purchasing as the market matures in terms of broadband
availability in homes especially in the metropolitan areas.
We note that real time payments is being planned for a first half of 2014 roll out, and this will further
support the electronic payments agenda and support P2P as well as C2B and B2B payments though
it may dilute existing ACH volumes and care needs to be taken in the timing of its introduction. In
addition to be successful, scheme rules need to be established and understood by stakeholders, and
the bank’s systems need to be capable of real time rather than batch processing and of real time AML
checks. Compared to a 3-day cycle, there is no recourse to recall if a mistake is made or a suspected
fraudulent transaction. Real time or instant payments are certainly a precursor to collaborative e-
commerce methods such as the Dutch I-deal payment method and the UK ZAPP initiative and a more
convenient method of payment than cards which in turn minimises the incidence of incomplete
purchases.
In this stage there is the opportunity with a more established infrastructure to introduce loyalty
products such as cash back or points for financial transactions to incentivise further the digital
agenda.
The focus also moves into the realms of inter-country or international payments with schemes such as
WAMZ in West Africa interlinking national RTGS similar to those that have started in East Africa and
out of South Africa. These are designed to simplify and bring efficiencies to international trade and the
supply chain from a small importer buying goods in China to the large multinational oil companies.
The same concept can also be applied to linking ATM/POS switches and enabling a Ghanaian visitor
needing to withdraw cash from a local ATM in Togo without recourse to the black market or carrying a
wad of US dollars.
Further innovation for 2019 and beyond is more of a case of streamlining or fine tuning what has gone
before regarding the organisation in terms of ownership of GhIPSS and separating the scheme from
processing and driving a wider usage of standards such as ISO20022. This stage or classification
covering restructuring and standards can therefore be considered as fine tuning what has been
achieved in previous years.
Ultimately the recommendations and decisions will be made by the BoG and Payments council and
the roadmap may change from that provided herein.
That said, all in all, this is an exciting time for Ghana and from the workshops there is a clear
willingness by the stakeholders to collaborate and work together for the common good of the country.
There are number of quick wins where the impact is high and ease of implementation medium to high
and these should be started to demonstrate commitment in setting the firm foundation for the journey.
These are provided in section 6 of this report.
There should also be a flagship initiative that really demonstrates to Ghanaians and their neighbours
that innovation is not only achievable but operational and as in peer countries a ‘carrot and stick
approach will be needed together with a joint approach to m-payments with the Telcos operating in
the country. It would also be beneficial if a case similar in impact to mobile public transport payments
in Brazil were to be delivered and on the agenda, though given the diversity of transport operators
this exact programme may be difficult to achieve in Ghana.
Overall, the Bank of Ghana and GhIPSS should set specific goals for reducing cash and increasing
financial inclusion and monitor performance against those targets in order to assess the impact of
specific actions. The journey will be one of continuous steady improvement which given the will of the
various stakeholders to succeed will be successful. The following quotation sums up that view very
well.
7
Exhibit 1: T-map roadmap which describes the initiatives by classification and timeline
BoG : Target state
2014 2015
La
yin
g t
he
Fo
un
da
tio
n
Building the future
2019 & beyond
Ma
kin
g b
ett
er
use
of
wh
at
is a
lre
ad
y t
he
re
Innovation for 2019 and beyond
2.2.2 MFS Circular
2.2.6 Cost of cash Index
2.2.7 Publish payments newsletters
2.2.11 NCA Reach out
3.2.1Reinvigorate mobile payments
3.2.2 VAS on current schemes
4.2.1 Instant Payment scheme
5.2.2IBAN / Numbering
5.2.3 NFC payments
5.2.4 Account Switching
5.2.5 ISO 20022
5.2.6Separation of Scheme from Infrastructure
2.2.1 Setup Ghanaian Payments Council
2.2.3 Pricing caps and display circular
2.2.4 PoS and acceptance guidelines
2.2.5 Enable TSA regime
2.2.8 Pursue security certification to improve trust
2.2.9 Stakeholder communication plan
2.2.10 Fraud & misuse reporting
2.2.12 MoFBuy-in
2.2.13 ePaymentsregulation / code
2.2.14 eMoneyregulation
3.2.3 electronic salary payments
3.2.4 eGovt. Initiatives
3.2.5 hybrid / mPoScapability
3.2.6 PoS deal negotiation
3.2.7 ATM & Activity
monitoring
4.2.8 EMV Cards
3.2.8 Supporting laws as per World Bank
guidelines
3.2.9 epaymentonly threshold
4.2.2 Bill payment scheme
4.2.3 Anti-fraud solution at GhIPSS
4.2.4 eCommerce/ ebanking gateway
4.2.5 Cashless policy
4.2.7 Multi-function Ghana card
4.2.6 Re-visit direct debit scheme
4.2.9 West African interlinking of
EFTPOS/ATM switches 4.2.10 West African RTGS payment interlinking
5.2.1Multi-currency mobile
4.2.11 Recapitalize and commercialize GhIPSS
stake
2016-18
8
1. Introduction
The Payments systems act of 2003 empowered the Bank of Ghana (BoG) to play a pivotal
role in establishing, operating and promoting payments systems (among other things) in
Ghana.
BoG then established Ghana Interbank Payment and Settlement Systems Limited (GhIPSS)
which owns and operates e-payments schemes and infrastructure within the country and
many of these infrastructures have been established within the 2008-2012 window.
Exhibit 2: Payment systems landscape in Ghana: GhIPSS is the principal payments
infrastructure body in Ghana, anchoring the payments transformation landscape as part of the
Bank of Ghana
As such Ghana has the fundamental baseline infrastructure in place to support further
enhancements by offering:
Real Time Gross Settlement system for high value payments and settlements
An ACH for direct credits/credit transfers and direct debits – G-ACH
An 3 day and same day cheque clearing mechanism – Gh-CCC
CardsE-Payments ‘Cross / X’-Border
Mobile / Wallets
Prepaid / Closed loop
Cash & Slow
PaymentsDirect
Credit
Cash Debit
(ATM)
Cheques Debit
(POS)
Credit Remittan
ces
SWIFT
e-zwich (National Switch)
CCC*
* CCC - Cheque codeline clearing i.e. cheque truncation system.
$ GIS - Ghana Interbank Settlement System - RTGS. This uses SWIFT FIN Y Copy.
gh-link TM
Tra
diti
onal P
roducts
Em
erg
ing
Pro
du
cts
Sika card
Mondex card
RTGSDirect
Debit
GACH
GIS$
GhIPSS
Bill Pay and E-invoicing
Mobile Fin Services
Aitel
Tigo
MTN
9
ATM interchange enabling cash withdrawal from any ATM with a valid debit card – Gh-
LINK
A national POS acquiring service for merchants – Ezwitch
Thus far there have been two distinct waves of development of the national payments
infrastructure which have established the baseline systems but some specific initiatives are
planned for 2014 and further value added initiatives will follow as part of the short to medium
term (2014-2020) roadmap.
Exhibit 3: The payment systems evolution in Ghana: Bank of Ghana has overseen 2 waves of
development and could trigger the next wave to achieve twin objectives of inclusion and
efficient payments (lower cost of payments)
However, even with this infrastructure baseline, Ghana is very much a cash society and as
shown in the following exhibit, cheque usage is rising against a global trend in cheque
reduction1 and e/m-money initiatives are not on a steep growth trajectory despite growing
mobile phone ownership.
1 World Payments Report 2013, Capgemini and RBS
Payments 2.0 (Wave 2)Payments 1.0 (Wave 1)
Ch
eq
ue
HV
PS
LV
PS
Sw
itch
& C
ard
2002
2013
October,2002 - GIS
(RTGS) operational
2008-
E-Zwich (proprietary banking
and retail payment system)
200820001998 2004
2010
20122006
2009/10 -
CCC (Cheque
Truncation)
Dec,2010 to Aug 2011
a. CT (ACH Direct Credit)
b. DD (ACH Direct Debit)
Aug,2012 -
gh-link (Switch)
1996
1997 -
MICR (Cheque clearing)
Cash
& P
ap
er
Paym
en
tsN
on
-C
ash
Paym
en
ts
Cash
Careful considerations of options and their fitment to Ghana’s context
is important to define Payments 3.0 (wave 3)
10
Exhibit 4: Growth in payment product types: While all payment products are demonstrating
growth, paper payments are still demonstrating healthy growth
In general Ghana is not as advanced in its move from cash as say Nigeria or in achieving
financial inclusion through the digital ecosystem as in say Kenya.
In addition, whilst this infrastructure is in place, there are specific capabilities, scheme rules
and monitoring that are not in place and could enable increased usage if provided. Generally
the benefits of e-transactions are not fully understood and cash is still ‘king’.
It should be noted that a number of Telcos such as MTN have set up schemes similar to
MPESA in Kenya, yet these have not achieved the same level of penetration as Kenya or
Tanzania.
Product Type CAGR
Cash (M1, narrow Money)
Cheques 4.6% (09-12)
ACH 75.78 (2011-12)
eZwich 68.84% (2008-12)
Gh-Link9x growth (H2,2012
Vs H1,2013)
GIS (Customer Account)
ChequeUsage dwarfs ACH usage
6.7
1m
2012
2.7
1m
2013 (Jan-
May)
1.3
3m
0.6
9m
CCC
ACH
While non-cash payments have demonstrated very high growth rates (on low base),
the acceleration of epayments is a must for achieving the twin objectives of efficient payments with inclusion (payments reachability)
11
Exhibit 5: Ghana as a lively economy and ‘Payments’ can help stimulate and sustain economic
progress
Similarly the benefits to merchants, corporate businesses, government departments (such
as the Ministry of Finance), and consumers from the e-agenda is not well understood as it
might be.
As shown in exhibit 4, Ghana is a lively economy and an effective and enhanced payment
systems ecosystem is viewed as essential to stimulating and sustaining economic progress.
With this in mind the Bank of Ghana asked Standard Chartered Bank to help define a
roadmap up to 2019 and beyond which would enable the twin and related objectives of
greater financial inclusion and a significant shift from cash payments to electronic/digital
payments, to be achieved within a ‘cash-lite’ economy.
This represented some specific challenges and issues to overcome in defining the barriers to
e-payments growth and to determine how to engage the demand and supply side
stakeholders to achieve greater usage with respect to the usage of the specific levers of (a
combination thereof) - law, commercials, governance, defining broad solutions / initiatives
that can be implemented to allow rapid epayments uptake.
In addition whilst the principal focus is intra-Ghana, the Bank of Ghana also seeks to
improve international payments to support the commercial transactions of Ghanaian
businesses with neighboring West African states and principal trading countries such as
China. Enabling faster turnaround time (TAT) and reduction in carrying cash for payments
are seen as specific objectives in this area.
This report will serve to provide the following:
Market Indicators
Local socio economic analysis / econometric indicators
Population 25.37(Source : World Bank 2012)
Bank account penetration
29(People with formal Account)(Source : Global Financial Inclusion (Global Findex) Database 2011)
Per Capita GDP $40.71bn (Source : World Bank 2012)
PoS density 4.16per 100,000 residents(Source : World Bank,2009)
GDP growth CAGR
7.59% CAGR(8%-’08; 4%-’09;8%-’10; 15%-’11; 8%-’12)(Source : World Bank 2012)
Banked Vs Unbanked Population
>80%(Source : http://www.pwc.com/en_gh/gh/pdf/ghana-banking-survey-2011.pdf)
Internet usage 40.7%(10,564,180 subscribers)at the end of August, 2013
(Source : http://www.nca.org.gh/)
Mobile phone usage >100% (27.51m Aug 2013)
mobile voice telephony connections
34.5% - Mobile data subscription
(Source : http://www.nca.org.gh/)
Literacy rate 71.5%age 15 and over can read and writeSource : CIA World Fact Book, 2010 census
Over the last decade, the continent had become the most exciting global economic story with Ghana
ranking 14th among the top 20 fastest emerging economies in the world - The Economist
12
Define the roadmap (sequencing and timeline) over which the above can be achieved.
Enable the above through a combination of data analysis, stakeholder connect (selected
sample) and peer group analysis.
A definition of schemes, change management & culture to ‘enable’ this change?
Standard Chartered Bank have been working closely with Capgemini—a strategic consulting
and services provider to the bank—together with GhIPSS and representatives of the Bank of
Ghana to create the content of this report. The source of the data in this report has been
from primary research through several stakeholder workshops, questionnaires and
interviews and input from GhIPSS/Bank of Ghana, and secondary research through
available sources to determine peer country practice and general best practices deployed.
The peer countries used were Kenya, Nigeria, Kenya, South Africa and Tanzania.
Exhibit 6: Potentially, there are 4 broad scenarios of evolution for e-payments in Ghana
Various scenarios were determined and validated to create the questionnaires used and a
full deck of slides were produced to define the whole study end to end, which were used to
solicit views and opinion during the stakeholder workshops.
In approaching this study the various approaches to rolling out an e-payments strategy were
analyzed. Of these the Rapid uptake model was viewed as the most appropriate to be used
for Ghana.
Demand Pull
A sizable group of demand side
stakeholders expects significant
benefits from the use of epayments.
These stakeholders will force their
banks to start offering e- payment
products
Rapid uptake
A collaborative and sequenced
approach that delivers Visibility
(Suppliers) and Value to (Buyers /
Demand) that enables targeted e-
payments growth through combination
of supply enablement and demand
stimulation.
Supply Push
Newer schemes / products are defined.
Newer players with connectivity, reach
are enabled to deliver services (incl.
Legal approval). Players proactively
push epayments to reduce ‘cost of
payments’ by rewarding transition away
from loss leader products.
Req
uest ep
aym
ents
p
rod
ucts
Relu
cta
nt
to e
paym
ents
p
rod
ucts
De
ma
nd
sid
e
ep
ay
men
ts s
tra
teg
y
Supply side epayments strategy
Reactive and patchy Pro-active and comprehensive
Snail paced progress
Broad Infrastructure exists. Paper
payments still growing. Non-cash
payments growing but reach still low (i.e.
Unbanked) and not cannibalising the
demand for (in-efficient) paper payments.
This situation not accretive to policy
decisions and for accelerating /
supporting economic agenda.
We observe that Ghana is a ‘two-paced’ market : while the ‘banked’ need
awareness for uptake, the ‘unbanked’ need alternative for rapid inclusion into payments world.
13
How to read this document
Following this introduction, this document proceeds to discuss the various initiatives that were
identified as having strategic importance for Ghana. The initiatives are discussed in various chapters
aimed at improving Ghana’s payments landscape: Laying the Foundation (chapter 2), Making Better
Use of What Is Already There (chapter 3), Building for the future (chapter 4), and Innovating for 2019
and beyond (chapter 5).
Each of the initiatives discussed in the above chapters can be further classified as being or pertaining
to a different aspect of the payments infrastructure:
Governance aspects: pertaining to regulatory (pertaining to the legal underpinnings necessary for
payments to function within) industry and government bodies and their relation to each other with
respect to national payments bodies.
Technical aspects: pertaining to initiatives aimed at setting up or improving the present-day
technical infrastructure for carrying out payments
Scheme aspects:
Change Management aspects
Commercial aspects
The document ends with an overall overview of the strategic payments roadmap for Ghana. Quick
wins are identified and the various initiatives are plotted against a timeline.
14
2. Laying the Foundation
2.1. Introduction
Ghana has a good payments infrastructure foundation, in fact many initiatives and steps are
already present, however there is clearly scope for improvement. The foundation is clearly
infrastructure based and GhIPSS already has plans for enhanced or new infrastructure for
the country supporting new payment methods.
What is missing is the alignment and support of the stakeholders (government departments,
Banks, commercial businesses, merchants, consumers and allied organizations such as
Telcos). The risk at present is that new payment schemes can be introduced before the
target stakeholders understand the benefits to them or have the resources and budgets to
implement them.
Clearly high MSC’s for merchant POS transactions inhibiting widespread acceptance of
cards or the case of the GHS 100 for clearing a cheque or rural banks not having access to
all payment systems are some of the issues being cited today.
In cases of disputes between banks over say a return of funds from a fraudulent cheque the
Bank of Ghana will provide an arbitration committee but this is not a formalized and
recognized department to conduct binding arbitration.
In general, a government will lay down some high level political principles such as making
sure there is an even-playing field and access to payment systems by all banks, that there
should be principles of fairness in terms of pricing and fees, and for greater if not full
inclusion of its citizens into financial services.
Following on from this there would be a super-steering committee of stakeholders to
determine what is needed and the scheme rules, standards and operating principles for
introducing new or enhanced payment services. This is typically called a ‘Payments council’
and the critical success factor is to have a broad church of membership which in the past
has been primarily made up of (large) banks.
It is also imperative that whatever principles, schemes and rules are agreed, these need to
be monitored and there needs to be penalties for non-compliance. Some form of regulatory
oversight committee should be set up with a dual role of arbiter in the case of disputes.
As with all foundations on possible soft ground there needs to be a strong underpinning of a
legal framework drafted by the Bank of Ghana. However as legal changes can take time, our
recommendation is that new initiatives are rolled out in parallel with the legal process.
It was clear from the workshops and questionnaires that there was overwhelming support for
a formal governance structure supported by new financial laws to provide a solid foundation
on which to build. The case of m-money provision is a case in point where new agents are
15
approved by the NCA, but should also be approved by the Bank of Ghana as Payment
services providers, thus needing greater cooperation between Telcos and the Bank of
Ghana.
Having set up these structures it is essential that there is a broader communications and
implementation policy to ‘inform, enthuse and educate’ all participants in the payments
ecosystem and advise them what they need to do and when in order to reap the benefits of a
‘cash-lite’ country.
With a solid Governance and legal structure and generic communications policy and process
for the implementation of new schemes, we believe there will be a solid foundation on which
to build and this is a priority short term deliverable in the roadmap.
2.2. Initiatives
2.2.1. Setting up a Ghanaian Payments Council
Initiative Category Governance & Legal Ease of Implementation Medium
Impact High Proposed Timelines Near term (H1 2014)
Current State
Payments governance is driven primarily by Bank of
Ghana together with delivery arm - GhIPSS (wholly
owned by BoG).
Bank of Ghana drives the broad objectives of
efficiency and Inclusion through its policies and
oversight.
Peer Practice
Tanzania: Established NPSC (National Payments
System Council) that helps direct NPS (National
Payments System).
Nigeria: Structured 10 working groups under CBN
though not labeled as a payments council.
India: Held under the aegis of NPCI, The payments
governing body.
Australia: Joint consultation by RBA and APCA
launched in October, 2013 to form Australian
Payments Council.
Voice of Stakeholder
Q: We asked stakeholders at the workshop if the BoG
should develop and anchor a payments governance
body with multiple/wide stakeholder participation (by
whatever name called – Council, Committee, Group
etc)?
A: An overwhelming, 100% of the respondents
‘Strongly agreed’
There was also a strong support for the appointment of
an independent payments ombudsman.
Actions/
Details
A Payments Council is the prime means by which many countries and regions ensure diverse
stakeholder involvement to evolve decisions and consensus on the direction and details of the
payments industry. It also ensures ‘alignment’ for the benefit of end customer by smoothening
out narrow interests that may arise from time to time.
The Ghanaian Payments Council could be formed with, including but not limited to, following
aspects :
Objectives : Primary authority to Define, Design and Drive the realization of Roadmap
through collaborative decision making, and alignment with national government objectives.
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
16
Legal Structure : Set up as an association or foundation with its own articles of association
Participants: Suggested participants can be GhIPSS, Banks, FIs, Telcos’, Stock Exchange,
Major Corporates, Large Merchants, Retails consumers. The steering committee however
would be a smaller group headed by the Governor of the Central Bank with decision making
authority.
Sub-committees : To ensure focus and adding ‘details’ to the direction, we recommend to
constitute, at a minimum, five committees – Operations, Legal, Standards, Automation,
Technology and pricing.
Funding: Institutional Members to the council could pay a yearly membership fee with which
the various activities of the council can be supported.
See Exhibit 6: Proposed structure of the Ghanaian Payments Council
Rationale
We believe the diversity in Ghana payments system will be well addressed with the
appointment of a formal payments council and the council would be the rightful owner of the
strategic payments roadmap.
17
Exhibit 7: Proposed structure of the Ghanaian Payments Council
18
2.2.2. MFS Circular (Addendum to BB circular of 2008)
Initiative Category Governance & Legal Ease of Implementation High
Impact High Proposed Timelines 2014
Current State
BoG issued the ‘Branchless Banking’ guidelines
under the notice- BG/GOV/SEC/2008/21 in 2008
(along with an addendum).
It provided the basis for mobile financial services in
Ghana. The details included: permitted model (many
to many), permissible activities, KYC, anti-money
laundering, use of agents, agent due diligence,
agreements etc.
The agency model is in place due to many Ghanaians not having a bank account due to various infrastructure and social reasons.
Many Telco’s are providing mobile payment facilities
but challenges exist :
─ Interlinking of payments between operators
─ Lack of education on benefits
─ Slow growth
Peer Practice
Kenya: CBK (Central Bank of Kenya) engaged with
CCK (Communications commission of Kenya)
where CCK deferred to CBK specifics of M-PESA
oversight.
Tanzania : MoU with Telecom regulator (between
Bank of Tanzania and Tanzania Communications
regulatory authority (TCRA)
Voice of Stakeholder
Q: We asked stakeholders by when BoG should
enable agent based mobile financial services.
A: 70% of the respondents agreed that it should enable
within 2014.
Actions/
Details
Mobile financial services have proven to be the single most important scheme / product to
drive inclusive growth in African markets. See the following exhibit on impact of mobile
financial services in Tanzania.
We recommend :
A re-visit of these guidelines to publish additional guidelines that would trigger greater
adoption. It is critical that Ghanaians have a bank account or mobile money account to
credit and debit if cash usage and financial inclusion objectives are to be met.
Engage with NCA to push for aggressive uptake (while balancing oversight)
Rationale Calibration of this scheme is very important for BoG to achieve its goal of ‘Financial
Inclusion’.
Enable (agent based) mobile financial services
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
19
Exhibit 8: Tanzania volumetric analysis demonstrates that traditional products plateau /
decelerate over time
2.2.3. Pricing caps and display circular
Initiative Category Governance & Legal Ease of Implementation Medium
Impact Medium Proposed Timelines H1 2014
Current State
Payments governance is driven primarily by Bank of
Ghana together with delivery arm - GhIPSS (wholly
owned by BoG).
Bank of Ghana drives the broad objectives of
efficiency and Inclusion through its policies and
oversight.
Peer Practice
Kenya & Tanzania: Provide EFT debit, credit,
cheque clearing as ‘free services.
India: RBI has mandated tiered maximum fees for
RTGS payments.
Voice of Stakeholder (Pricing Caps)
Q: We asked the regulatory stakeholders if payments
pricing should be regulated at a product / scheme
level?
A: An Overwhelming, 100% of the responded agreed.
While ‘agent enabled’ mobile financial services & SMS banking transactions rose rapidly.
0
1
2
3
4
5
6
2005 2006 2007 2008 2009 2010 2011
Vo
lum
es
(in M
illio
ns)
TISS (RTGS) Cheques EFT (ACH) POS Intenet banking
0
20
40
60
80
100
120
140
160
2005 2006 2007 2008 2009 2010 2011
Vo
lum
es
(in M
illio
ns)
ATM Mobile Fin Services SMS Banking
CAGR
ATM- 50.85%(from ‘05)
SMS - 148.49% (from ‘06)
Mobile FS - 326.88% (since ‘08)
CAGR
TISS - 25.49% (from ‘05)
Cheques - 1.82% (from’05)
EFT - 31.85% (from’06)
POS - 71.14% (from’06)
Internet - 44.27% (from ’06)
Scheme Details
Cheques
CAGR restricted to under 2%. While volume held up, processing value reduced by 50% demonstrating higher value payments taking the ‘e-route’.
POS
Continued rise in PoS transactions at 71% CAGR can be attributed to higher POS penetration in Tanzania at 11/100,000 Vs 4/100,000 in Ghana
Source : World Bank, 2009
- Volumes handled (Traditional products) - - Volumes handled (High Growth products) -
Scheme Details
Mobile Fin Services
During the period from 2008 to 2011, number of agents rose from 2,757 (2008) to 83,795 (2011) forming the foundation of the 325%+ explosive growth.
Source : http://www.bot-tz.org/PaymentSystem/statistics.asp , Capgemini Analysis
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
20
Voice of Stakeholder (Display)
Q: We asked the stakeholders if payments products
and pricing should be displayed in the branch?
A: More than 77% of the respondents agreed.
Voice of Stakeholder (Level of Pricing)
Q: We asked stakeholders if payments were fairly
priced?
A: While more than 60% respondents felt that
payments were fairly priced, about 29% of the
respondents felt that payments were overpriced. In an
earlier survey by BoG, there is evidence of
overcharging by some participants.
Actions/
Details
We recommend BoG to pass / issue a circular mandating both display of payment product
pricing and also cap pricing at a reasonable level. We recommend the ‘pricing’ committee in the
Payment council as the appropriate forum to recommend the details at a product level.
The intention is not to stifle competition and micro-manage payment services providers and
banks, but to instill regulation that is based on fairness and transparency for consumers and
business alike. Accepted practice is that domestic cheques should be charged at a flat fee, and
debit cards similarly rather than ad-valorem.
Rationale
Improves awareness
Standardizes pricing (removes ad hoc / exorbitant pricing)
Sets-up the expectation of participants for pricing caps under a non-cash policy that will be
introduced subsequently.
2.2.4. Implement POS and acceptance guidelines
Initiative Category Legal Ease of Implementation High
Impact Medium to High Proposed Timelines 2014
Current State
The PoS infrastructure is linked to the e-zwich
scheme.
ATM cards of banks exclusively work on ATMs
only.
Hybrid PoS, which accepts both e-zwich and
normal ATM cards are undergoing certification
and will be rolled-out shortly.
Commercial banks have contracted with Visa and
MasterCard to provide PoS solutions to their
merchant clients.
Peer Practice
Nigeria : Specific POS guidelines with minimum
definition of minimum standards, stakeholder and
roles and responsibilities definitions, settlement, fees
and charges limits, POS Terminal specifications (along
with optional services and timelines for compliance.
Appointment of NIBSS as the (PTSA - Payment
terminal service aggregator). NIBSS is responsible for
the certification and re-certification of all payment
terminals and applications on behalf of the Industry
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
a. Fairly priced
b. Overpriced
c. Underpriced
d. Others
___________
21
Voice of Stakeholder
Q: We asked stakeholders if BoG should move to
enable rapid PoS penetration - in the near, medium
or long term?
A: 89% of the respondents agreed that this scheme
should be launched in the short term.
Actions/ Details We recommend the issuance of specific POS guidelines to trigger POS penetration
beyond the e-zwich and ATM wave in line with Nigerian benchmark.
Rationale Creates framework for players to choose role in POS transformation.
Creates a level playing field.
2.2.5. Enable TSA regime
Initiative Category Governance & Legal Ease of Implementation Low
Impact Medium Proposed Timelines 2014
Current State
Republic of Ghana is in early stages of treasury
management / centralization.
Peer Practice
Leading countries like USA, UK, France, China,
Philippines have successfully deployed TSA /
centralization models.
India: While accredited commercials banks act as
tier 1, RBI acts as the tier 2 to enable the TSA for
Government of India.
Nigeria: The initiative was championed by the
Federal Ministry of Finance with the office of the
accountant- general of the federation serving as the
implementing agency, in active collaboration with
the Central Bank of Nigeria (CBN) in 2012.
Voice of Stakeholder (General Laws)
Q: We asked stakeholders to rate current regulations
support BoG to play an active role in Government
payments and finances like a) enabling (G2X - Govt to
Consumer, business etc) payments b) enabling TSA
(Treasury Single Account) structures etc?
A: There is clear view from the respondents that
initiatives like TSA are required.
Actions/
Details
We recommend alignment with Ministry of Finance and other units of the Government of
Republic of Ghana to enable Treasury centralization / TSA to reap efficiencies of visibility,
lower cash balances, limited borrowing etc. Such an approach would also streamline receipts
and payments from the treasury.
Improve POS penetration rapidly
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond
2017)
a. Yes, Fully support
b. Yes, party support
c. No - Need new
amendment / approval
22
Rationale
The Government can be an ‘early adopter’ of e-payments thus triggering adoption by other
stakeholders.
Savings triggered from efficiency can be invested in improvement of the Payments systems
and Banking sector as a whole.
2.2.6. Publish and maintain Cost of Cash index
Initiative Category Change Management Ease of Implementation High
Impact High Proposed Timelines H1 2014
Current State
Cash is a dominant payment instrument in Ghana.
Ghana also faced currency ‘re-denomination’
exercises that cost economy. It is estimated that the
re-denomination in 2007 cost USD 66.2m (USD
94.8m in 2003).
If savings are triggered through lower cash usage,
the same can be channeled by the Government for
productive uses.
Peer Practice
Nigeria : Used a clear ‘Cost of Cash’ Index as a
precursor to the ‘Cashless Nigeria’ initiative
Both in the UK and EU, various studies have been
commissioned that quantify the ‘cost of cash’ to rally
public opinion to migrate to low cost payment
products.
Voice of Stakeholder
Q: We asked stakeholders if BoG should Publish and
maintain a ‘Cost of Cash Index’ for Ghana as a whole?
A: More than 85% of the respondents agreed to the
idea of publishing a ‘cost of cash’ index.
Actions/
Details
We recommend immediate publication of ‘Cost of Cash’ index with a minimum coverage of :
Cash in Transit
Cost of processing
Vault Management
Counterfeit losses
The index should also track the M1 metric (narrow money) and improvements should be
published at least once a year.
Rationale
Prepares consumers for a ‘Cashless Ghana’ initiative.
Can enable savings for payments service providers and for Ghanaian economy as a whole.
Enables continued support for other e-payment initiatives while capturing ‘early benefits
measurement’ (low hanging fruits).
Provides a visible metric that can be tracked by various stakeholders. Such metric would also
be picked up by media creating further awareness and acceptance (lower resistance to
change)
Publish and maintain a ‘Cost of Cash Index’ for Ghana as a whole ?
1-Don’t Agree
2-Neutral
3 -Agree
4. Strongly Agree
23
2.2.7. Publish Payments newsletters
Initiative Category Change Management Ease of Implementation High
Impact Medium Proposed Timelines H1 2014
Current State
There are no payments newsletters published today
by BoG.
Peer Practice
UK: The UK Payments council publishes a Quarterly
newsletter ‘Communique’.
India: NPCI publishes e-newsletter at regular
intervals.
Australia: ‘Payments Monitor’ a quarterly newsletter
is published by APCA (Australian Payments and
Clearing Association).
Nigeria: Used a newsletter approach to drive the
‘cashless’ initiative.
Voice of Stakeholder
Q: We asked stakeholders if BoG should publish a
regular payments newsletter?
A: 90% of the respondents agreed.
Actions/
Details
We recommend a combined statistics and policy / payments plan progress based newsletter to
be published on a quarterly basis (under BoG / Payments Council).The same should be made
available to all payments industry participants (push) and at websites of BoG and GhIPSS (pull).
Rationale
Enables Systematic communication
Enables reachability to wider audience and triggers discussion / debate
Conveys progress and helps drive advocacy.
2.2.8. Pursue security certification to improve trust
Initiative Category Change Management Ease of Implementation Low
Impact Medium to High Proposed Timelines 2014-2015
Current State
While BoG / GhIPSS deploy prudent practices,
the systems are not yet PCI-DSS certified.
Peer Practice
EU: EBA Clearing pursued ISO 27001 to improve public
trust in information systems.
South Africa: Bankserv is PCI-compliant and in 2012
achieved PCI 2.0 compliance.
Nigeria: NIBSS is PCI DSS compliant
A regular ‘Payments council newsletter ?
1-Don’t Agree
2-Neutral
3 -Agree
4. Strongly Agree
24
Voice of Stakeholder
Q: We asked stakeholders if BoG/GhIPSS should
undertake PCI-DSS Compliance?
A: More than 87% of the respondents agreed.
Voice of Stakeholder
Q: We asked stakeholders if BoG/ GhIPSS should
undertake ISO security compliance and audits?
A: More than 87% of the respondents agreed.
Actions/
Details
We recommend BoG / GhIPSS to undertake PCI certification and validate the same on an
annual basis.
We recommend that any card based payments for income tax, corporation tax, VAT
Ghanaian equivalents have their card details stored so as to enable any overpayments or
refunds to be paid back via the same method as was originally used. This will allow card
scheme rules to be adhered to and support AML.
A QSA (Qualified Security Assessor) may be appointed for the purpose.
Also, all payments applications procured by GhIPSS must be PCI compliant -Payment
Application Data Security Standard (PA DSS)
Rationale
Improves public perception that their card details are safe.
Helps drive adoption of security standards by payments industry participants.
Meets Scheme rules
Sets an example for online retailers to follow (and in turn become PCI-DSS compliant).
2.2.9. Define a comprehensive stakeholder communication plan
Initiative Category Change management Ease of Implementation Medium
Impact High Proposed Timelines Starting 2014 and
continuously thereon
Current State
BoG together with Ministry of Communications
engages with the stakeholders through traditional
means - press conference, select stakeholder
meetings etc.
Peer Practice
UK: A range of communication tools are used to -
FAQ’s, one minute guides, success stories etc.
Tanzania: TCRA (Tanzanian Communications
Regulatory Authority) played an important role in
enabling mobile payments by communicating KYC
requirements (alignment of KYC for mobile SIM and
KYC for M-PESA) and supporting the improvement
of awareness and education.
PCI-DSS compliance
1-Don’t Agree
2-Neutral
3-Agreee
4-Strongly Agree
ISO certifications and audits
1-Don’t Agree
2-Neutral
3-Agreee
4-Strongly Agree
25
Nigeria: Launched a continuous campaign to rally
users and stakeholders to enable the ‘Cashless
Nigeria’ initiative. Used diverse methods like
Weekly information bulletins on roll-out and
stakeholder connect schedule.
Provide for detailed ‘Frequently asked Questions’ to
improve self learning
Share success stories that ‘consumers can relate to’
Voice of Stakeholder (RTGS)
Q: We asked stakeholders if BoG should develop a
Stakeholder Vs Media matrix and extensively enable
outreach along with development of a communication
plan with relevant Govt ministry / body?
A: More than 91% of the respondents agreed with this
proposed initiative.
Actions/
Details
We recommend a detailed communication model to engage with stakeholders at 3 levels :
Pre-initiative
Initiative Roll-out
Post Initiative (Ongoing)
We also recommend that target stakeholders should be segmented into two broad categories:
Commercial / Non-Consumer bodies – This category includes – Public Sector, Regulators,
Private Sector, Telcos, Banks and Large Merchants.
Retail & Individual driven enterprises – Individuals and Small merchants and vendors etc.
The stakeholders should be engaged with a range of communication tools. We suggest 15
such tools mapped to the phase and client type for use by BoG.
See suggested framework in following exhibit.
Rationale
Comprehensive engagement leading to awareness and education.
Early identification of issues triggering resolution.
Broad citizen support for ‘faster’ ePayment adoption.
Develop a Stakeholder Vs Media matrix
and extensively enable outreach. Develop a communication plan with relevant Govt
ministry / body.
1-Don’t Agree
2-Neutral
3 -Agree
4. Strongly Agree
26
Exhibit 9: Communications matrix. Initiative phase versus client segments
2.2.10. Enable fraud and misuse reporting
Initiative Category Change Management Ease of Implementation High
Impact Medium Proposed Timelines Short to Medium term
Current State
There are no specific returns sought on Fraud and
misuse.
Peer Practice
India: The RBI has issued specific guidelines on
Frauds – classification and reporting. It includes –
classification, monetary limits and aligned reporting,
attempted fraud case reporting, Quarterly returns
and a progress report, guidelines for internal review
and reporting to external investigation agencies etc.
Nigeria: A monthly return on fraud and forgeries is
mandated with a penalty for failure to report.
Voice of Stakeholder
Q: We asked stakeholders if BoG should publish fraud
and misuse statistics?
A: 79% of the respondents agreed.
Pre-Initiative Initiative Roll-Out Post Initiative /
BAU / Ongoing
Clie
nt S
eg
me
nts
Initiative / Program Phase
Co
mm
erc
ial
Re
tail &
In
div
idu
al
dri
ve
n e
nte
rpri
se
s
Pu
blic
Se
cto
rP
vt
Se
cto
rT
elc
oB
an
ks
Sm
all
me
rch
an
ts /
Ve
nd
ors
etc
Ind
ivid
ua
ls
1.News paper adverts
2.Newsletters3.Workshop - Train the
trainer
4.Workshop - end user5.Training sessions
6.SMS Broadcast7.One page guide / Brochure
8.Circular / Notice
9.Emails10.Agent training
11.FM Radio12.TV Adverts
13.Product pack (with
timelines) 14.Road show
15.FAQs
5
La
rge
M
erc
ha
nts
7
3
2
Phase 1 Phase 2 Phase ‘n’
Re
gu
la
tors
13
3
1
6
8
11
9
14 14 14
Bank / Telco /
Player driven
BoG driven
4
4
4
4
1
6
11
1
6
11
7
7
15 15 15 15
8
910
Publish ‘fraud’ and misuse statistics
1-Don’t Agree
2-Neutral
3-Agreee
4-Strongly Agree
27
Actions/
Details
We recommend a directive to capture and report fraud through ‘returns’ to be filed by payments
providers. At a minimum, such returns can be sought on a monthly basis or based on ‘amount’
limits require immediate reporting. We recommend, “Payments Council” to determine the
appropriate method to communicate such statistics to payment service providers with
consideration towards anonymity (especially for consumption by general public).
Rationale Enables better oversight and triggers actions to maintain sanctity.
2.2.11. Reach out to National Communications Authority for telco
infrastructure
Initiative Category Governance & Legal Ease of implementation Easy
Impact Low (but necessary) Proposed Timelines 2014
Current State
Unclear which part of the telecoms and payments
infrastructure falls within the oversight and
regulatory remit if the National Communications
Authority or the Bank of Ghana.
BoG will launch regulations covering mobile
payments in 2014. Mobile payment schemes will
then need to be approved as compliant with BoG
regulations as well as NCA telco regulations. It is
understood to mandate a separation of accounts for
financial and telco transactions.
Peer Practice
Payments infrastructure is a vital infrastructure for a
country. With growth of mobile payments, a joint or
clearly demarcated regulatory overview is needed;
many countries have set up joint working groups or
committees to understand and work through each
others remits.
Certain countries such as Tanzania have adopted a
fast track approach to regulation whereby the telco
and the bank regulators work under and MOU whilst
the detailed legal work is being debated and drafted.
Actions/
Details
We recommend BoG and the NCA to set up a joint committee that delineates responsibilities
between each regulatory body and regularly discusses the state of the sector.
As an example, the NCA oversees the overall telecoms infrastructure, looking at public
charging or solar panel charging infrastructure in rural areas. With the advent of mobile
payments (e.g. the paying of government benefits on mobile accounts), the effectiveness of
this infrastructure becomes of vital economic importance for Ghana on any given day.
Therefore both regulatory bodies have different but shared interests in the state of the
infrastructure.
We recommend that an MOU is created and signed by BoG and the NCA as a precursor to the
final governance and its legal underpinning.
Rationale
Need for clear governance;
Need for regular overview of bottlenecks and solutions to possible roadblocks for rolling out
mobile money;
A joint working committee (between NCA and BoG) would facilitate this.
28
2.2.12. Stronger engagement with Ministry of Finance etc to secure buy-
in
Initiative Category Governance Ease of Implementation High
Impact High Proposed Timelines H1 2014
Current State
BoG is well aligned with Ministry of Finance (MoF).
Peer Practice
Kenya: Finance ministry ordered an audit into M-
PESA scheme in December 2009, more than two
years after no objection from Central bank of Kenya.
This demonstrated a light touch approach to kick
start the scheme but with monitoring oversight and
audit.
Actions/
Details
We recommend Prior and constant engagement with MoF to ensure government alignment on
all payments initiatives (from planning to execution – opinion, information sharing, feedback
incorporation and in-principle approvals.
MoF is a key stakeholder and we recommend adherence to communication principles
recommended in this report.
Rationale Early views on funding for transformation initiatives.
Secure buy-in on newer schemes (e.g. mobile money)
2.2.13. ePayments regulation / code
Initiative Category Governance & Legal Ease of Implementation Low
Impact Medium Proposed Timelines 2014
Current State
The Payment Systems Act 2003, Act 668 empowers
the BoG to oversee and manage payments systems
and provide broad guidance on payments aspects
(obligations, evidence, disputes etc)
Peer Practice
Australia: The ePayments Code regulates electronic
payments, including ATM, EFT, POS and credit card
transactions, online payments, internet and mobile
banking, and bill payments.
India : Payment and Settlement Systems Act, 2007
(PSS Act, 2007)
Actions/
Details
We recommend realization of a ePayments code that provides for, at a minimum, the following
aspects :
Disclosure
Liabilities
Conduct of payments service providers
Complaint handling.
Such code will typically cover aspects like - Terms and conditions for products, Un-authorized
payments liability, Recovery of mistaken payments etc.
Rationale
With the proliferation of e-payment products in recent years there is a need to document the
rights and responsibilities of payments service providers vis-à-vis consumers.
The challenges and outcomes vary based on underlying product and hence this regulation /
code should cover product level needs of consumers of payments services.
29
2.2.14. eMoney regulation
Initiative Category Governance & Legal Ease of Implementation Low
Impact Medium Proposed Timelines 2014
Current State
The Branchless banking guidelines of 2008 are the
closest to eMoney guidelines. But the scope is
significantly different.
An eMoney regulation enables a sound legal
framework for ‘stored value payment products’
Peer Practice
eMoney directive in EU.
UK : eMoney is defined as :
─ money that is stored electronically, including magnetically;
─ issued on receipt of funds for the purpose of making payment transactions
─ accepted as a means of payment by persons other than the issuer
Voice of Stakeholder (General Laws)
Q: Against the backdrop of mobile and epayments
revolution in payments both globally and in Africa, We
asked stakeholders does Ghana need a
comprehensive emoney framework?
A: More than 95% of the respondents ‘Strongly agreed’
an e-payments framework was needed for Ghana.
Actions/
Details
We recommend issuance of eMoney regulations that cover, at a minimum :
Authorization (who can issue)
Capital
Conduct
Complaint handling
Supervision and reporting
Fees etc
eMoney includes products like Prepaid, wallets whether used at retailers or online.
Rationale
This regulation enables, typically, non-banks to provide payment and banking (partially)
services and can be a useful medium to aid financial inclusion.
Such competition, typically, enables better choice and value for consumers by triggering the
need for ‘Innovation’
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
30
Case Study: Brazilian president approves mobile payments law
Brazilian President Dilma Rousseff has approved a law that introduces regulations for mo-bile
payments in Brazil. Law number 12,865 creates a new legal entity known as a "payments institution,"
which will be regulated by the Brazilian Central Bank and allowed to offer mobile payment and
banking services to low-income consumers. Digital wallet providers, card issuers, banks, and mobile
operators will be eligible to apply for payments institution licenses.
The main goal of the bill is to promote financial inclusion. It also calls for common standards and
interoperability between Brazil's various m-payments initiatives. But interoperability will not be
mandatory, rather it is signaled as a goal further down the road, and any new (m-payment) service
(that) receives a license will be required to have a clear roadmap of how it will eventually interoperate
with the wider Brazilian financial ecosystem. The bill seeks to create the 'lightest' possible mechanism
in terms of regulatory burden for commercial players, hoping it will translate into cheaper payment
instruments that will reach low-income customers.
The BCB had 180 days from the publication of the bill to develop the framework for its payments
regulations, which will need approval by Brazil's Congress and the country's Conselho Monetário
Nacional, or National Monetary
Low banking penetration but growing middle class
For many financial services firms in Brazil one of the biggest challenges is how to gain market share
of the upwardly mobile lower middle class without incurring high credit and operational risks. The
advent of basic payments services through a “KC-Lite” approach, effectively capping the amounts that
customers are allowed to transact on a daily basis in return for a lighter enrolment regime; allows the
creation of vast platforms of users that can then be analyzed for customers who warrant a full-service
approach. It represents, in other words, a platform which can be used by banks to enroll those
customers that seem most upwardly mobile and credit worthy.
Brazil has a high percentage of unbanked consumers, even as mobile phone penetration there has
grown rapidly: according to the World Bank, in 2011 less than 60 percent of Brazilian adults had an
account at a formal financial institution, while there were 125 mobile phone subscriptions per 100
people.
How to create scale
In order for such a platform to be viable, scale is needed. Various initiatives are being studied,
including the adoption of a prepaid m-payment method for Sao Paulo’s and Rio de Janeiro’s micro-
bus public transportation method, the disbursement of Bolsa Familia’s welfare payments through
mobile accounts, or the linking of POS systems to allow for m-payments.
31
3. Making Better Use of What is Already There
3.1. Introduction
As stated in the introduction of this document the financial infrastructure and baseline
payment systems are already in place. This chapter examines specific initiatives that can be
introduced to achieve a wider usage of those systems as well as enhancements and value
added services that can be applied to those current schemes.
The current mobile services should be ‘re-invigorated’ and closer cooperation between the
NCA and Bank of Ghana plus the MNO’s is needed in a coordinated manner to
subsequently relaunch the existing services. It is believed that the endorsement of the m-
money providers as PSP’s by BoG through a new stringent approval process and
subsequent publicity will provide a high degree of trust with regard to any perceived risks
when compared to cash usage.
This section will also address some of the issues in terms of EftPOS acceptance which is not
widely available against the backdrop of a merchant community with few large retail chains.
We also examine hybrid EftPOS and acceptance of m-money at the point-of-sale will add
further acceptance of the move from cash especially as the old adage of ‘Convenience,
convenience and convenience’ holds true. Payments is just the final stage in a purchase.
From a merchant perspective a faster tendering process away from cash will mean less time
at the checkout and may reduce checkouts, but the benefit will be greater information and
the possibility of stimulating sales using a loyalty scheme.
Usage of monoline cards e.g. CUP which operate outside the card schemes allied to pricing
caps on fees can reduce the merchant service charges that are collected from acquiring
banks. The level of MSC has been quoted as a principal barrier to merchant acceptance.
We note that the Bank of Ghana is considering the purchase of EftPOS terminals to
stimulate acceptance which in turn will influence consumers to sign up to card schemes and
thus rely less on cash. However it is strongly recommended that any such terminals be
‘future proofed’ in terms of what methods can be adopted e.g. NFC, m-money, EMV etc. In
many cases such as ‘the charcoal seller’ or small or sole traders education and acceptance
of m-money will negate the need for traditional EftPOS as it will be mobile or cash rather
than card or cash.
32
3.2. Initiatives
3.2.1. Reinvigorate mobile payments
Initiative Category Awareness
Commercial Ease of Implementation High
Impact Medium Proposed Timelines Set-up and launch
campaign from H2 2014
Current State
Ghanaian m-payments schemes launched by
commercial parties such as MTN or Airtel are slowly
gaining traction;
However even though subscription numbers seem
to be rising, transaction volumes seem to be
flattening;
Analysis shows that this can be attributed to a
number of factors (amongst others):
─ A lack of legal underpinning for m-payments providers with respect to the provision of payments services (to e addressed shortly with new upcoming legislation);
─ The focus and predominance of peer-to-peer payments in current schemes, and the lack of focus on retail payments (see also discussion on Hybrid POS below)
─ A lack of trust and education in the use of mobile payments schemes;
─ A lack of government sponsored m payments: The government is the prime source of transactions in Ghana and could drive transaction volumes substantially;
─ The need for a more predominant role to be played by the banking sector in Ghana with respect to offering cash and liquidity services to m-money agents and branches;
─ The lack of standards and a roadmap to “interoperability” between m-wallets and between m-wallets and banks.
Peer Practice
There are many examples of mobile payments
schemes throughout Africa. Schemes such as mPesa
have actually been used as a template for the current
schemes in Ghana. However the copying of these
examples to the Ghanaian situation may lie at the heart
of the current slowing of growth in transaction volumes.
In other words, a reinvigoration of mobile payments
must tailor these schemes to the specific Ghanaian
situation and culture in order to succeed.
It should be clear as to who within government has the
responsibility and accountability for regulating and
coordinating the m-payments market: either the bank
of Ghana or the National Communications Authority.
The upcoming addendum to the present e-money
legislation will clarify this role, obliging mobile money
and wallet suppliers to register as payments services
providers. PSP’s in the EEA are regulated under the
terms of the EU payments services direction (PSD).
Separation of Telco services such as post-pay airtime
and banking services is a likely outcome but a close
working relationship between the NCA and BoG will be
essential to the success of this initiative which has
brought significant benefits to peer African countries.
Previous Research
Key factors determining the success of mobile money schemes2
External Factors
Socio-economic factors (such as geography, GDP per capita, levels of financial inclusions, and level of GSM
penetration and the level of infrastructure in a market) certainly have an influence on how a mobile money
provider will develop its service; however, they do not determine or predict the degree of its success;
Studies show no statistical correlation between the GSM market share of an MNO and the success of its
mobile money service. Mobile money can be a viable business even for small operators;
2 Source: GSMA — Mobile Money for the Unbanked, State of the Industry 2012 and MMU “Driving Customer Usage of Mobile
Money for the Unbanked” 2011
33
There is in fact a positive correlation between level of competition in a given market and the success of mobile
money offerings: more market dynamics means more in-vestment and success for all parties;
The vast majority of successful mobile money providers are MNOs, rather than banks or third-parties.
However in most regions MNO regulatory environments are not clear or enabling MNOs to offer mobile money
services along with banks, in or-der for mobile money to extend the reach of financial services successfully
within more markets. This is seen as an inhibiting factor.
Internal Factors
Mobile money is an OpEx, not a CapEx business. Investing in distribution seems to be key. Successful
providers tended to focus on growth rather than profitability and tended to re-invest the money they made, and
all successful providers have the ambitious objective of growing their Mobile Money business into a significant
share of overall revenue within five years of deployment (e.g. at Safaricom this is about 18% of total revenues)
Organizational aspects play a key role, and what seems to work is: strong commitment to mobile money from
its CEO, mobile money unit stand-alone from the rest of the company, focus on one or two core services to
start with, assign high number of FTE’s to distribution and customer care
In terms of marketing strategy, mass mark advertisement campaigns used primarily to raise awareness, but
direct marketing and field agents to register new customers.
In terms of product mix it appears that the key to success is choosing the right product for a market and then
focusing on this product; In Ghana’s case it appears that over reliance on peer to peer transactions may not be
enough, and that a focus on retail payments is needed too;
It is crucial to make it easy for customers to make transactions soon after they register
If literacy barriers are high, provide over-the-counter services, which allow a mobile money agent to perform a
transaction on behalf of the customer.
Focus on creating and maintaining high performing agents:
Crucial to develop solutions for agents to easily manage their liquidity and rebalance: e.g.: easy access to
mobile money float and liquidity (cash), such as using master agents, super agents, and rebalancing via
internet banking.
Active agent management – closely monitor agent activity, assessing both the volumes of their transactions
and the quality of their service.
Dismiss agents for KYC infringements, fraudulent activities, low performance (based on their volume of
transactions and revenues) and branding infringements. Master agents can be cut if they fail to keep adequate
levels of float or have too many underperforming agents.
Managing active rates – active rate of on average of successful providers is 73%
Actions/ Details
We recommend the inception of a working group that investigates measures for
reinvigorating mobile payments in Ghana. We suggest this working group to operate under
the auspices of the Ghanaian Payments council and the National Communications Authority,
and to adopt the following guidelines and objectives:
Pool resources from commercial parties to develop an education campaign for the use of
mobile money. Focus on “below the line” marketing like using face-to-face methods
through agents rather than above the line mass advertising;
Clarify who within government has the responsibility and accountability for regulating and
coordinating the payments market: either the bank of Ghana or the National
Communications Authority. The upcoming updating of the present e-money legislation will
clarify this role, obliging mobile money and wallet suppliers to register as payments
services providers. This separation between telco’s traditional subscription business and
payments provision should also ensure that payments provision has its own rules for
consumer protection, dispute resolution etc. The Bank of Ghana has a role to play in
informing the public in general about this new role and in engendering trust of the public in
Ghanaian m-payments schemes as guaranteed under law;
Start a program for the widening of adoption of mobile payments, e.g. through fuel
stations, hotels, restaurants , etc. See also section 3.5 on hybrid POS for SMS-based
34
POS solutions needed to increase the use of mobile payments for retail situations;
Publish a roadmap in which guidelines and expectations on standards, interoperability
between wallets and between wallets and banks are set in the future;
Pursue the creation of strategic partnerships between banks and Telco’s for the banking
support of agent networks in cash and liquidity management services;
Develop an incentivizing pricing scheme: price the use of cheque or cash payments
higher than electronic payments;
Include guidelines for a mechanism aimed at the resolution of incorrect/disputed
payments;
Involve government agencies. Government payments such as wages, benefits, but also
acceptance of payments such as tax, fees and fines etc. should be made electronically
through m-wallets or bank accounts.
Rationale Reinvigorating m-payments in a coordinated manner and with government and payments
council involvement will lead to rising electronic transaction volumes.
3.2.2. Provide value added services on current schemes
Initiative Category Scheme Ease of Implementation Medium
Impact High Proposed Timelines H2 2014
Current State
BoG manages the GIS (Ghana Interbank Settlement
System) RTGS system. The Average value per
transaction has increased from GHC 509,279.4 in
2003 to 1,134,731.7 in 2010 demonstrating that only
very high value are being settled on RTGS system.
GhIPSS manages multiple schemes for e-payments.
Of which GACH supports direct credit and direct
debit products.
Peer Practice
India: Credit Transfer scheme (NEFT) has
introduced multiple intraday settlement windows
providing cleared funds in under 2 hours from
initiation.
Kenya: CBK - Kenya’s banking regulator requires
the use of RTGS for payments above Sh1 million
but over time the system has proved popular even
for payments of as low as Sh100,000.
Voice of Stakeholder (RTGS)
Q: We asked stakeholders ‘by when’ should an RTGS
limit be lowered?
A: More than 65% of the respondents responded that
this facility should be launched within 2014.
Voice of Stakeholder (Intraday Batch)
Q: We asked stakeholders ‘by when’ should intraday
multiple batches for ACH payments be enabled?
A: More than 80% of the respondents responded that
this facility should be launched within 2014.
Lower RTGS monetary limit
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond
2017)
Intraday multiple batches for Direct Transfer / Credit Transfer
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond
2017)
35
Voice of Stakeholder (Advance Submissions)
Q: We asked stakeholders ‘by when’ should advance
submissions for ACH payments be enabled?
A: More than 63% of the respondents responded that
this facility should be launched within 2014.
Actions/ Details
We recommend BoG / GhIPSS to enable the following options on existing scheme /
product to improve their attractiveness to users :
Intraday batches for Direct credit / credit transfer settlement
Enable advance submission of payments (Direct Debits and Credits)
Lower RTGS limit
Provide direct corporate access to the G-ACH, as per the UK
Develop a scheme for mobile-authentication of direct debit collections to introduce trust
in ‘pull’ transactions for corporate and consumers
Consider image capture of cheques and positive pay schemes.
A move to uniform account numbers and standardized forms
Rationale
Enable users taste power of e-payments and faster turnarounds.
Enables planning by users and shift from cheques.
Removes re-keying of individual by banks on payroll that is made via RTGS payments
Introduces control and trust on direct debit collections to broaden usage of that payment
method
3.2.3. Ensure all employees paid electronically
Initiative Category
Legal
Technical Infrastructure
Commercial
Ease of Implementation Hard
Impact Very High Proposed Timelines
Start process by end of
Q4,2014
Implement by end of Q4
2020
Current State
Wages and salary payments in Ghana are done
mostly by cheque or cash;
With the adoption of mobile money schemes,
wage/salary payment onto mobile money wallets or
accounts is feasible and provides a strong
advantage over cheque and/or cash usage.
Peer Practice
Banks provide employee templates through internet
banking for SME’s.
Larger corporate are sponsored by their banks to
submit single debit/multiple credit payroll directly to
the ACH via ACH accredited software and ‘scheme
certification
Of interest:
http://www.safaricom.co.ke/business/solutions-by-
Enable advance submission.
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond
2017)
36
business-needs/grow-your-business/cloud-
services/online-payroll
Stakeholder comment
In interviews with stakeholders, Government departments make payments to employees directly and employees
have bank accounts to support this. However it was reported that payrolls can be returned due to what are
viewed by corporate customers as spurious reasons and in one bank, payment is made to the bank using RTGS
with a schedule of payments to be made to employees, resulting in extra work for the bank and the possibility of
keying errors. Peer practice is to use a single debit (employer) and multiple credits (employees) via the national
ACH.
Actions/
Details
We recommend the inception of a working group that investigates measures for the
stimulation of electronic wage payments. We suggest this working group to operate under the
auspices of the Ghanaian Payments council, and to adopt the following guidelines:
Develop scenario’s for the electronic wage payment on both existing infrastructure (bank
accounts) and on mobile money wallets;
Ensure interoperability between bank and mobile money accounts is on the roadmap;
Develop an incentivizing pricing scheme: price the use of cash, cheque or cash wage
payments higher than electronic payments;
Include guidelines for a mechanism aimed at the resolution of incorrect/disputed payments;
Pay government benefits or welfare benefits electronically or price them accordingly so that
electronic payment is cheaper for beneficiary;
Allow for automatic income tax deductions at a later stage: if included from the outset this
may lower the adoption of electronic wage payment;
Involve government agencies: government wages should be paid electronically, thereby
stimulating the use of overall electronic payments.
Rationale
Stimulating electronic wages vastly improves the efficiency of the overall payments
landscape. Payment of benefits ensure payments reach the beneficiaries, and allow for
proper statistics and controls of overall wage/benefit payments.
Electronic wage payments will allow automatic income tax deduction in the future.
3.2.4. Other e-government initiatives
Initiative Category Scheme Ease of Implementation High
Impact High Proposed Timelines Start H2 2014 through
2018
Current State
End of year/manual tax deductions and
reconciliation
Tax payments to the treasury are variable in their
use of electronic payments
Apart from a closed service provided by two banks,
electronic payment of customs duties is not
possible, and is usually by cheque or cash.
Peer Practice
UK: RTI (Real Time PAYE) schemas the most
radical change to tax payments since 1947.
Removes end of year reconciliation and supports
top up benefits.
Kenya/Uganda – have an online tax payment
system such that when users make a payment via
their bank, the bank links to the tax portal and
validates the tax slip number. This ensures accurate
payments and immediate reconciliation for the tax
department.
37
Actions/
Details
We recommend that the GCNet platform be made immediately accessible to all banks in
order to promote electronic payments.
We recommend an initiative whereby Tax payments can be made electronically (and far
easier than cash or cheque) and supported by the correct information. Depending on the
values this might use the new Instant pay or existing RTGS systems.
We suggest that the new Instant Bill payment service planned for 2014 also enables
government tax departments to be registered, though the alerting feature may not be
required.
The Instant pay scheme should allow the capture of tax payment data. A medium to long term
objective could be RTI, such that when salary payments are made to employees under a
PAYE scheme, information on gross to net salaries together with tax and other deductions
are provided to the Ghanaian tax authorities as per the UK scheme.
We further recommend that e-collections is adopted for customs payments via mobile,
internet or other electronic means and al-lows for any additional data such as PDF or
photographed documents and receipts as required.
Benefit and pension payments should always be paid using electronic means direct to a bank
account, payment card account, m-money account as appropriate.
Rationale
Simplified and accurate assessments for taxation
Provides the data needed for any top up benefits for low paid workers.
Faster receipt of tax payments and less manual processes.
Easier and more accurate reconciliation of receipts vs. demands.
Less risk of dishonoured cheques or cash ‘leakage’.
3.2.5. Develop and roll-out a hybrid or mobile Point Of Sale (M-POS)
capability
Initiative Category Technical Infrastructure
Commercial Ease of Implementation Medium
Impact High Proposed Timelines
Start process by end of
H1,2014
Implement by end of Q4
2015
Current State
Mobile payments are growing steadily in Ghana,
but are mainly restricted to peer-to-peer payment
situations.
Card payments in retail situations are limited in
number.
POS penetration levels are low in Ghana (4.16 per
100,000 inhabitants)
In order to increase the acceptance of e payments
in retail situations, a comprehensive stimulus
program is needed, which puts a series of M-POS
solutions at its heart.
SMS-based retail POS solutions seem to be best
positioned in Ghana.
Peer Practice
Kenya: Lipa Na MPesa: retail payments by which a
customer enters a merchant’s predefined mPesa till
number and then pays through the mPesa menu on
his/her phone through an SMS. There are no
transaction fees for payee; merchant pays a fee per
transaction (usually +/- 1%).
Nigeria: Paga: using a specific merchant short-
code, customers can pay merchants through SMS.
POS card accepting tools: Square, Izettle: POS
apps on a Smartphone that accept card payments
MHIT (Australia): SMS-based system
aimed at small retailers that allow menu
tailoring per retailer: e.g. an app for a
particular restaurant with set menu
where an SMS-based payment can be made at (or
before) 24purchase.
38
Voice of Stakeholder (POS Penetration)
Q: We asked whether BoG should target a specific
POS penetration level (As per World Bank the ratio is
4 per 100,000 Vs e.g. Tanzania 11/100,000)?
A: About 60% of respondents agreed.
Voice of Stakeholder (Display)
Q: We asked the stakeholders if BoG should negotiate
a ‘country wide’ POS deal with a leading consortium of
POS suppliers? (e.g. Nigeria negotiated a similar deal
and POS is available at N45k/ USD 280)
A: About 50% of respondents agreed
Voice of Stakeholder
Q: We asked stakeholders if a hybrid POS would be a
winning initiative?
A: more than 75% of respondents strongly agreed.
Actions/
Details
We recommend the inception of a working group that takes the initiative to stimulate the
adoption of POS devices in retail situations in Ghana with the aim of increasing e-payment
levels in retail situations. We suggest this working group to operate under the auspices of the
Ghanaian Payments council, and to adopt the following guidelines:
Develop standards and guiding principles for POS methods for retail situations: e.g.:
stimulate the use of SMS-based POS methods such as Lipa Na MPesa;
Include guidelines for a mechanism aimed at the resolution of incorrect/disputed payments;
Stimulate the integration of SMS-based POS methods with Value-Add-Services such as
balance of accounts for merchants, inventories, etc...
Keep transaction pricing low: retail customers should not have to pay for using the service,
merchants should pay very low fees based on package (e.g. depending on value add
services that payments providers offer them);;
Determine the feasibility of creating a Smartphone app for merchants that integrate the SMS
confirmation messages from retail customers with value add services (total sales, VAT,
etc.);
Develop a strategy for SMS-Based POS methods: a single standard that all commercial
parties need to adhere to, or allowing competing parties to develop their own standards;
Involve merchant associations, consumer protection agencies, telco companies and banks
in the development of the standards/guidelines;
Develop a roll-out strategy: per retail sector or nationwide (e.g. for transportation, food
purchasing or fuel purchasing, or for all situations);
Develop an awareness campaign aimed at increasing the use of SMS-based payments;
Determine guidelines for card-accepting POS systems: study the applicability of existing
Smartphone applications for card-based POS (i.e. Square or Izettle).
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
e. This would be the
wrong thing to do
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
39
Rationale
Stimulating m or e Payments in retail payment situations will vastly increase the level of
epayments in the economy and reduce cash usage;
Improves awareness and increases acceptance levels;
Provides a standardized framework for commercial parties to adhere to, including proper
dispute resolution mechanisms that engender trust in the payment method;
Allows for the focused stimulus of certain sectors;
Determines the applicability of card-based mobile POS systems.
3.2.6. POS deal negotiation (Dual readers including Contactless?)
Initiative Category Technical Infrastructure Ease of Implementation Medium
Impact High Proposed Timelines H1 2014
Current State
PoS penetration is low in Ghana. According to
World Bank estimates (in 2009) there are only 4.16
PoS terminals per 100,000 residents.
Peer Practice
Nigeria: The industry has endorsed four
manufacturers for supply of Point-of-Sale terminals
with negotiated discounts and local support
arrangements. A PoS can be purchased from any
of these suppliers for as low as N45k per terminal.
However, parties are free to purchase PoS
terminals from any manufacturer, so far they meet
the PoS specifications set in the Nigerian Point-of-
Sale guidelines( plus card industry standards).
Voice of Stakeholder
Q: We asked stakeholders if BoG should negotiate a
‘country wide’ POS deal with a leading consortium of
POS suppliers?
A: Only 50% of the respondents agreed with the view,
while more than 40% did not agree that this should be
enabled.
Actions/
Details
We recommend :
Issuance of a position paper on this infrastructure in co-operation with the NCA.
A follow-up of the same with an industry interaction with representatives from the POS
suppliers under the aegis of the payments council.
Provision should be made to support ‘dual interface’ (Contact and Contactless) PoS
Publish a business and benefits case of negotiated PoS deal. A positive scenario arising out
of such an analysis, along with other due considerations should form the basis of adoption of
this initiative.
Rationale
While the benefits of higher PoS penetration are evident, the fractured response from
stakeholders necessitates a focused discussion (documented through a position paper).
Replacement of ‘contact’ only PoS in favor of dual interface PoS is costly and is an inhibitor.
Early provision will help ‘market’ led adoption.
PoS penetration is an integral part of vision of cashless economy. Without higher POS
penetration cashless initiative cannot be realized.
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
e. This would be the wrong
thing to do
40
3.2.7. ATM switching & Activity Monitoring
Initiative Category Technical Infrastructure Ease of Implementation Low to Medium
Impact Medium Proposed Timelines 2015
Current State
No real time monitoring available
‘Cash n dash’ services
Biometric authentication
Both VISA and MasterCard are issued and
accepted in Ghana, however both local and foreign
card transactions are routed to VISAnet and Master
Card Int. for processing.
Peer Practice
Nigeria: Is in the early stages of implementing
technical monitoring solutions – terminal
components and service status, detection and
tracking, network availability and status etc. BAM
(Business activity monitoring) solutions for complex
event processing are also being considered.
UK. The LINK network enables all domestic Visa
and Mastercard debit card transactions to be
processed by the LINK switch with RTGS
settlement of net positions.
Actions/
Details
BoG should ensure cards used on domestic ATMs to be processed by gh-LINK
We recommend a medium priority for activity monitoring.
Rationale A core aspect of safer and lower cost domestic operations that will be the basis to support
effective operations, given the expectations around greater volumes.
3.2.8. Supporting laws as per World Bank guidelines
Initiative Category Governance & Legal Ease of Implementation Low
Impact Medium Proposed Timelines 2016-2018
Current State
The Republic of Ghana has its banking and payments
regulatory base primarily in the following acts.
Banking (Amendment) Act, 2007, Act 738
Anti-Money Laundering Act, 2008, Act 749
Borrowers and Lenders Act, 2008, Act 773
Payment Systems Act 2003, Act 668
Financial Institutions (Non-Bank) Law 1993, PNDC
Law 328
Bodies Corporate (Official Liquidations) Act, 1963
(Bankruptcy and collaterals)
Bills of Exchange act of 1961 Act 55 (an adaptation
of the English Bills of Exchange Act 1882)
The Payments systems act provides for :
principles of transparency as applicable to payment
systems;
minimum obligations of participating financial
institutions;
principles required to achieve irrevocability and
finality of payment;
admissibility of electronic evidence in the law courts;
Peer Practice
Guidelines: The World Bank has recommended a
set of 12 aspects of regulation that should comprise
the legal framework for the National Payments
System. i.e.
─ General laws: Property and Contract, Banking and Finance, Insolvency, Credit and collateral, laws for determination of Jurisdiction and e-documents& digital signatures.
─ Specific laws : Payments instruments, calculation and discharge of payment obligations, default proceedings and disputes, central bank roles, responsibility and authority in National Payment system, formation and conduct of infrastructure service providers and markets, securities infrastructure services.
India : Payment and Settlement Systems Act, 2007
(PSS Act, 2007)
41
dispute resolution; and
other miscellaneous provisions covering disputes,
offences, penalties and interpretations.
Source : http://www.doingbusiness.org/law-
library/ghana and http://www.bog.gov.gh/
Voice of Stakeholder (General Laws)
Q: We asked stakeholders their opinion on the current
state of laws that support / pertain to payments in
Ghana (General Laws)?
A: Other than Banking & Finance laws and credit &
collateral, the respondents felt that the remaining laws
need a revision / upgrade.
Legend for all graphs:
Legend for all graphs:
Property & Contract Laws
Banking & Finance laws
Insolvency laws
e-documents &
digital signatures
Jurisdiction & applicability
Credit & Collateral laws
42
Voice of Stakeholder (Specific Laws)
Q: We asked stakeholders their opinion on the current
state of laws that support / pertain to payments in
Ghana (Specific Laws)?
A: Other than laws pertaining to Payment Instruments
and Calculation and discharge of payment obligations
all other laws need a revision / upgrade.
Actions/ Details
We recommend an in-depth analysis of existing laws to ensure alignment with World Bank
guidelines. We recommend the ‘legal’ committee in the Payment council as the
appropriate forum to delve into this aspect. Notwithstanding the typically long drawn
process of regulation from ‘Drafting’ to ‘Act’, BoG should issue operational guidelines,
where applicable, to support initiatives in the interim.
Rationale
Helps align to global standards
Provides sound grounding for planned payments transformation that is legally
enforceable.
3.2.9. E-payment only threshold
Initiative Category Legal Ease of Implementation High
Impact Medium to High Proposed Timelines 2015
Current State
Currently there is no monetary threshold beyond
which payments need to be effected only through
electronic means.
Currently, any such limits are circumvented through
multiple smaller transactions totaling to required
amounts.
Peer Practice
Nigeria: Third party cheques above N150, 000
ineligible for encashment over the counter and have
to be presented through clearing.
Actions/
Details
We recommend launching this initiative with a relatively higher monetary limit to acclimatize
and create awareness among stakeholders. The same should be followed-up with lower
limits aligned to other ‘Entry criteria’ for Cashless policy.
Coordinated to come in to play at later stages of cashless policy.
Rationale Helps prepare stakeholders to move to e-payments.
Payment Instruments
Calculation and discharge of
payment obligations
43
4. Building for the Future
4.1. Introduction
This chapter covers the specific new initiatives that may use existing infrastructure, but
provide new payment schemes or services that will bring benefits to all stakeholders.
4.2. Initiatives
4.2.1. Launch instant payment scheme
Initiative Category Scheme Ease of Implementation Low
Impact High Proposed Timelines 2014 (in progress)
Current State
Currently there is no ‘Instant Payment’ Scheme
operational in Ghana.
However, GhIPSS is undertaking preliminary
activities in launching the scheme in 2014.
Peer Practice
UK: The Faster Payments Scheme (FPS) that
delivers immediate payments has seen very high
uptake since launch (over the last 5 years). The
FPS rails have been used by banks to overlay
innovative solutions. Vocalink is launching ‘Zapp’
initiative for use by banks to enable immediate
mobile payments.
India: Immediate payments are developed as a
mobile enabled product - IMPS. Origination is now
allowed from Netbanking services of commercial
banks also.
Nigeria: An important pre-criteria for ‘Cashless’
initiative, the NIP - Nigerian Instant Payment was
launched prior to cashless initiative.
Voice of Stakeholder
Q: We asked stakeholders ‘by when’ should an Instant
payment product be launched in Ghana?
A: More than 86% of the respondents responded that
this scheme should be launched within 2014.
Actions/ Details
We recommend GhIPSS to launch Instant Payment Scheme at the earliest.
BoG should also encourage payment institutions to re-use the ‘Instant Payment’ scheme
to build / overlay Value added services (VAS)
The launch should also be aligned with the stakeholder communication plan method
recommended.
Instant / real time low value payments scheme
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond 2017)
44
The overall implementation plan should be agreed with the Payments council to ensure
that scheme rules and real time implications are understood and agreed.
Scheme rules would include pricing, debit caps for banks (if deferred net settlement),
daily and transaction limits for specific banks, response time, sort code checker etc.
BoG should ensure that banks have sufficient AML security checks in place given the
real time nature of transactions – this would typically follow card systems practice.
However, GhIPSS could in fact offer a ‘cloud based’ service whereby suspect
transactions could be returned to the sending bank for additional verification.
Rationale
Enable users taste power of immediate secure transfer.
Prepares consumers for a ‘Cash-lite Ghana’ initiative.
Provides the infrastructure for further services e.g. non-debit card online purchases (see
4.2.4)
4.2.2. Enable a bill pay scheme and supporting infrastructure
Initiative Category Scheme Ease of Implementation Low
Impact High Proposed Timelines 2014(in progress)
Current State
There is no specific bill presentment and payment
infrastructure. Mobile solutions provided by Telecom
firms offer payment options.
GhIPSS plans to launch an Instant Bill service in
2014, which will notify the biller of a payment being
made and a gateway to view transactions. This
stops short of a full EBPP program but pre-
registered billers should simplify the process,
reconciliation and reduce errors.
Peer Practice
Australia: BPAY is a payment and e-presentment
service provided through the BPAY Scheme,
comprising financial institutions and biller
businesses. BPAY is currently offered by over 150
financial institutions and on more than 45,000 bills.
Bills carry CRN (Customer reference number) to
match invoice and customer. Value added services
like BPAYView for Online / Mobile banking view and
payment, pay using QR code available.
Nigeria: e-Bill PAY scheme that is Account-number-
based, online real-time Credit Transfer (based on
NIP). This is available through multiple channels -
Internet Banking (IB), Mobile Banking, Kiosk to
registered billers with notification.
Voice of Stakeholder
Q: We asked stakeholders, when to adopt Bill Pay
initiative- in the near, medium or long term?
A: 91% of the respondents agreed that this scheme
should be launched in the near term.
Use of QR codes in the EBPP process was also of
interest to the stakeholders but was felt to be a longer
term initiative towards 2017.
Actions/
Details
We recommend launch of bill presentment and payment scheme leveraging current
infrastructure that will bring the planned Instant bill initiative to a full EBPP capability. Within the
design of this solution, alignment with Instant payment scheme is envisaged.
The system should also allow full details of the invoice presented to be visible to both biller
(supplier) and payer (customer) and a unique reference that enables the biller to reconcile the
invoice(s) against their bank statement.
The system should enable extended narratives to be supported and GhIPSS might consider a
central repository of invoice data along the lines of the Finnish Rosettanet scheme.
Bill pay scheme
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond 2017)
45
Rationale
Enables bringing all ‘pull’ payments onto single umbrella
Enables an EBPP infrastructure and triggers drive away from cash and cheque based
payments.
Provides alerts on payments being made and also enables more efficient open invoice
reconciliation.
4.2.3. Host anti-fraud solution at GhIPSS
Initiative Category Scheme Ease of Implementation Low
Impact Medium Proposed Timelines 2015
Current State
There is no real time fraud detection solution in
place.
Peer Practice
Thailand: ITMX, Thailand's interbank payment
provider, implemented a real-time fraud detection
solution for its 21 member banks. The solution
detects fraud in ATM/debit card transactions and
monitors 70 million transactions per month.
Voice of Stakeholder
Q: We asked stakeholders, if BoG / GhIPSS host anti-
fraud technology at GhIPSS level (collaborative space)
to improve reliability?
A: 87% of the respondents agreed, with a majority
agreeing strongly.
Actions/
Details
We recommend implementation of anti-fraud technology at GhIPSS to combat fraud. As the e-
payment uptake improves, fraud can dilute the faith of consumers.
Rationale
Protect member banks from fraudulent transactions.
Ensures consistent coverage across member institutions.
Reduce financial losses and operational costs.
4.2.4. Enable a collaborative e-commerce payment method (e.g. iDeal /
MyBank)
Initiative Category Scheme Ease of Implementation Low to Medium
Impact High Proposed Timelines Medium term
Current State
Currently there is no GhIPSS / BoG scheme that
enables e-Commerce.
This assumes significance due to the fact that while
Ghanaians match up to African average on usage of
Social networking, mo-bile banking and Online
shopping are ‘strikingly’ below African Average and
may need a ‘trusted’ online multi-bank e-commerce
enabler.
Peer Practice
Payment schemes that enable e-commerce have
successfully integrated ‘net / online banking’
functionalities into e-commerce checkouts, whereby
no card or banking details are shared with the
Merchant, while paying from the convenience of Net
/ online banking services provided by commercial
banks.
iDeal, NL: e-Commerce initiative in the Netherlands
became the ‘most preferred’ method of payment for
e-commerce transactions beating cards, PayPal,
credit transfer and direct debit.
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
e. This would be the wrong
thing to do
46
MyBank, EU (EBA): EBA’s ‘MyBank’ initiative,
similar to iDeal, but at a European level, also is
rapidly becoming the delivery channel for multiple
payment instruments. While Credit Transfer and
Direct debit are available, future products include
payment on delivery, P2P payments, subscription to
e-invoices etc.
Actions/
Details
We recommend an immediate analysis into this scheme. While benefits may be limited to urban
population in and around Accra, the signaling effect of such a scheme is likely to have far
reaching consequences.
Rationale
Channel increasingly available Internet usage and usage habits to trickle into banking while
enabling to drive e-commerce.
Overtime can pick up volumes from other products, especially loss leaders like cash and
cheque.
Is ‘bank friendly’ and can re-use ACH infrastructure.
Lower reliance on payment card network / infrastructure.
4.2.5. Implement penal pricing for cash & paper (Cashless Policy)
Initiative Category Legal Ease of Implementation Low
Impact High Proposed Timelines 2015
Current State
There are no penal provisions for cash and paper
(Cheque) payments.
3rd
party cheques above GHS5000 are ineligible for
enchashment OTC.
Peer Practice
Nigeria : Defined a comprehensive penal pricing
policy :
─ Daily cumulative limit for withdrawals and lodgments
─ Lower penal fees for deposits and higher penalties for withdrawals
─ 3rd party cheques above N150,000 ineligible for encashment OTC
─ No reports to Central Bank on excess drawers.
─ Cash Charges kick-in after 3months of policy start date (charges holiday).
Voice of Stakeholder
Q: We asked stakeholders, when to adopt a cashless
policy in Ghana - in the near, medium or long term?
A: 57% of the stakeholders wanted the implementation
to be within the short term, while the balance 43%
wanted the implementation in medium term and
beyond.
Introduce cashless policy
Near Term (6months)
Short Term (2014)
Medium Term (2015-
17)
Long Term (beyond
2017)
47
Actions/
Details
While levying penal charges as an isolated initiative is straight forward, we recommend
careful consideration of prior change management, prior infrastructure enablement and
communication plan.
We recommend co-ordination of this initiative with ‘Cost of Cash’, ‘e-threshold’, ‘Instant
Payment’, ‘Bill payments’, ‘Mobile payments’ and ‘PoS initiatives’ to ensure a proper
‘foundation’ which in our opinion would drive success of this initiative. We recommend an
umbrella / coordinated governance across the above initiatives under the aegis of a
‘Cashless Ghana’ initiative (or similarly named).
Exhibit 9 describes where penal pricing fitted into the overall cash-lite journey for Nigeria.
Rationale Triggers significant push towards non-cash methods while reducing cost of cash.
Exhibit 10: Anatomy of the cashless model in Nigeria
Sup
ply
Si
de
E-Sc
he
me
s
Envision Enable Engage
Ca
rro
tS
tic
k
2009 Cost of Cash for economy & projections
Banks not to provide ‘cash in
transit lodgment services’ from Jan’12 ( replaced by CBN licensed CIT providers)
3rd party cheques above N150,000 ineligible for
encashment OTC
Daily cumulative limit for
withdrawals and lodgments
Phases : Pilot @ Lagos - 85% of POS and 66% of cheques penetration.
Card Neutral PoS
NIP instant transfer11+ mobile players licensedE-bill PAY
FunnelingAlternateHandling
Pricing
PoS Training, Awareness
Alternate product fulfillment
De
man
d S
ide ‘Monday Column’ (Print)
Need Pricing Transition
Cash Charges kick-in after
3months of policy start date.
No reports to Central Bank on excess drawers.
PoS pricing 1.25%, max
N2k/txn
Endorsed and negotiated - PAX,Bitel, Ingenico, Verifone with 45k/terminal
TAT for complaints on e-channels e..g. 72 hours for ATM complaints
Pri
cin
g
Higher penal fees for withdrawal
Lower penal fees for deposits
Payments System management Bill and Financial system Ombudsman bill are with National assembly. Evidence act under review.
No job losses at bank level
Regular monitoring and oversight of banks to ensure adherence.
Stakeholder
group sessions
Main Trade / Market places W
ork
sho
pM
ee
tin
gs
Q&
A(F
M)
Q&
A a
t m
kts
- Anatomy of the Cash-less model in Nigeria -
Continuous engagement
48
4.2.6. Launch direct debit scheme
Initiative Category Scheme Ease of Implementation Low to Medium
Impact Medium Proposed Timelines 2016-18
Current State
Direct debits in Ghana are available but like
many African countries form a very small
proportion of payments.
Inter-Bank direct debits are not generally used in
Ghana
Peer Practice
Direct debits for B2B and C2B are widely used in mature
markets and provide a ‘pull’ method for making regular
payments. They are very important in the cash flow of
small businesses such as gyms or other membership
based organisation that rely on a regular flow of
subscriptions. They are equally convenient for payments
such as gas and electricity payments by consumers and
businesses alike.
The UK model works on an exception basis under a direct
debit guarantee scheme whereby collections made
without a mandate or advised change in value are
reversed under the scheme rules.
The SEPA Direct debit scheme is more complex with a far
tighter control and communications of mandates between
parties.
Actions/
Details
We recommend an analysis into a Ghanaian scheme which can be provided through G-ACH.
We believe that giving a third party the ability to collect funds directly from a person’s bank
account may have some resistance in Ghana and so suggest that the instant bill alerting
mechanism be used to enable account holders to verify and approve a collection.
This can also be a discussion point with the Telco providers for post-pay plans and this may be
a catalyst to kick start the scheme. As is current practice in some countries such as the UK,
utility providers can provide discounts for payments made via direct debit to enable consumers
to sign up to the scheme.
A guarantee scheme along UK lines can also build trust in the scheme. In this scheme, any
unauthorised (e.g. without a mandate) collection is guaranteed to be repaid to the debited party.
Rationale
Simplification of regular payments
Improved cash flow for businesses
Is ‘bank friendly’ and can re-use ACH infrastructure.
Further reinforces the cash-lite agenda
4.2.7. Launch a multi-function Ghana card
Initiative Category Scheme Ease of Implementation Low to Medium
Impact Medium-High Proposed Timelines 2016-18
Current State
Banks in Ghana issue cards today but they are not
used widely due to the lack of points of acceptance
Merchant service charges (msc) are high and
include interchange as per card scheme rules
Examples have been cited whereby cash is carried
internationally to pay for purchases, say from China.
Peer Practice
In addition to traditional co-branded cards, countries
such as France and especially China issue
monoline cards – Carte Bleu and China Union Pay
(CUP) respectively.
The country scheme can set the rules and in the
case of CUP.bi-lateral arrangements with other
national schemes enables international acceptance.
49
Actions/
Details
We recommend a discussion with Banks and merchants and if accepted, an analysis into a
Ghanaian specific card scheme that cooperates with China Union Pay and other monoline card
schemes where specific payment/trade flows exist.
Cards based on a national scheme can set rules for fees that are acceptable to merchants and
the card can also be a catalyst for other functions i.e. it should be a ,multi-function card from the
outset and support a loyalty rewards scheme, and if NFC enabled, transport payments. The
scheme should also enable a pre-paid card capability for international commercial purposes.
The loyalty capability could build up value on the card based on purchases made and could
include special promotions such as a cashback on purchases. This again would incentivise card
usage over cash or cheque at the point of sale.
Rationale
A National identity for Card based payments
Lower MSC’s
More than a payment method
Further reinforces the cash-lite agenda
4.2.8. EMV Cards
Initiative Category Technical Infrastructure Ease of Implementation Low
Impact Medium Proposed Timelines 2016-18
Current State
EMV cards are issued by commercial banks to
customers that are typically travelling out of Ghana.
Peer Practice
Nigeria: Migrated to EMV by September, 2010 (the
date was pushed by at least four times) migration
about 30million magnetic stripe cards.
Kenya: Kenyan banks are expected to move from
magnetic strip credit and debit cards to the new
Visa and MasterCard EMV chip and PIN standard
by March 31, 2014.
Actions/
Details
We recommend a medium term priority for EMV cards initiative. A timeline may be arrived by
the recommended “Payments Council” by comparing POS adoption and fraud and misuse
statistics. In the interim anti-fraud technology adoption by GhIPSS can shepherd the card
business.
Rationale
Lower fraud losses (typically ATM) when compared to magnetic stripe
Lower fraud losses in cardholder present transactions compared to signature
Tight authentication for ‘offline’ purchases (i.e. no online authorization)
50
4.2.9. Participate in West African interlinking of EFTPOS/ATM switches
Initiative Category Governance / Scheme /
Technical Infrastructure Ease of Implementation Medium
Impact High Proposed Timelines 2016-18
Current State
The principal vehicle for international card payments
or ATM cash withdrawals are the card schemes i.e.
Mastercard, Visa, Amex, etc.
BoG/GhIPSS would like to consider a linking of
Ezwitch and the equivalent systems in other West
African countries.
Peer Practice
The best example of International card usage is
CUP which is achieved by a series of bi-lateral
relationships.
Actions/
Details
We recommend
Ghana payment council should consider a scheme to link Ezwitch with other countries and
commence with a pilot to prove the concept.
A priority list of countries for which inter-linking is sought along CUP lines should be drawn up
as part of the payments council agenda.
This will be dependent on the availability of monoline bank cards as card scheme rules and
fees generally apply irrespective of whether the network is used for a co-branded card.
Determine settlement currency.
Align card enabled transformation initiatives (ATM, PoS, EMV, PCI, Regional acceptance)
with WAMZ payments agenda.
A separate working group is suggested for inter-country initiatives such as this.
Rationale
Enable economic uplift through trade improvement both regionally and with global trading
partners.
Enables consumers and corporates to buy goods and services in other countries.
Supports the cash-lite agenda
Enables cash withdrawals in local currency whilst in neighbouring countries.
51
4.2.10. Participate in West African RTGS payment interlinking
Initiative Category Governance / Scheme /
Technical Infrastructure Ease of Implementation Low
Impact High Proposed Timelines 2016-18
Current State
WAMZ (West African Monetary Zone) - A regional
co-operation group with the objective of achieving
monetary union was established in the year 2000.
The group comprises of leading West African
Nations of - Gambia, Guinea, Liberia, Nigeria and
Sierra Leone and Ghana.
Among other leading objectives, enabling cross
border payments and supporting infrastructures for
RTGS, ACH, EFT/POS/ATM pertain to the
payments domain.
Peer Practice
EAMZ: Kenya, Uganda, Tanzania, Burundi and
Rwanda comprise the East African Monetary Zone.
In November 2013 a 10 year roadmap was signed
to achieve ‘single currency’ for the Union. From a
payments perspective, - EAPS (East African
Payments System) went live in December
2013. It facilitates real-time transfer of large value
payments across borders via the interbank Swift
network. Rwanda and Burundi have not participated
in this system yet.
SADC-SIRESS. A South African initiative for an
integrated regional electronic settlement system.
The working group includes a broad range of
countries including East Africa and went live on 21st
July 2013 for South Africa, Namibia, Lesotho and
Swaziland where the ZAR is a common currency
and is the first stage of a broader program. Issues
around a common settlement currency need
resolution before a broader rollout.
Actions/
Details
We recommend
Ghana payment council should be represented within WAMZ payment committees.
Pursue RTGS interlinking (Decentralised / Distributed system) at the earliest.
Determine settlement currency, and use the original European TARGET interlinking approach
as a starting point, given the preferred WAMZ ‘loosely coupled’ option.
BoG might consider a pilot concept working with a neighbouring country such as Nigeria or
Togo on a bilateral basis.
Align card enabled transformation initiatives (ATM, PoS, EMV, PCI, Regional acceptance)
with WAMZ payments agenda.
Rationale
Secure funding from multilateral development banks (e.g. IMF, ADB, AfDB, World bank)
towards payments initiatives that are approved under the aegis of WAMZ initiative.
Enable economic benefits through trade improvement both inter-regionally and with global
trading partners.
Enables inter-regional trade to become easier and more efficient.
Enables further socio-economic developments through the harmonisation of common
interests such as trade tariffs, border controls with the integration of the telco and financial
infrastructure.
52
4.2.11. Recapitalize and commercialize GhIPSS stake in tranches in
favour of banks
Initiative Category Governance Ease of Implementation Low
Impact High Proposed Timelines 2016-18
Current State
GhIPSS is wholly owned by BoG.
Peer Practice
India: Stake in NPCI (National Payments
Corporation of India) is held by ten promoter banks.
NPCI is a not-for-profit company and shareholders
do not receive any dividend. Discussions are
underway to broad base NPCI’s shareholding. A two
tier model based on deposit base (Tier 1) and
payment volumes (Tier 2) is under consideration.
The additional capital will help NPCI to further
strengthen the retail payments infrastructure and
bring down transaction costs in the banking system.
South Africa: BankServAfrica is bank owned - four
large South African banks as well as a consortium of
lower volume South African banks housed in a
separate company called Dandyshelf 3 (Pty) Ltd.
UK: VocaLink is owned by a consortium of 16 banks
and building societies
Australia: Scheme level ownership is evidenced -
BPAY is owned by Big 4 banks, EFTPOS is owned
by 16 banks.
Nigeria: NIBSS is owned by all licensed banks and
discount houses in Nigeria, and the Central Bank of
Nigeria.
Voice of Stakeholder
Q: We asked stakeholders, if BoG should divest stake
in GhIPSS?
A: 60% of the respondents agreed to this proposal.
Actions/
Details
We recommend BoG to move towards Bank ownership of processing infrastructure (i.e.
GhIPSS) through in a phased manner while unlocking value through channeling more payments
through the network.
This initiative should also align to identified funding needs to ensure most efficient deployment
of funds.
This may need to occur sooner than the date stated e.g. 2015, depending on the funding of
infrastructure projects related to the initiatives planned by the payments council.
Rationale Financial inflow to fund the roadmap
More skin in the game from banks is better for ‘commitment’.
a. Strongly agree
b. Agree
c. Neutral
d. Don’t agree
53
5. Innovation for 2019 and beyond
5.1. Introduction
This chapter describes further innovation that is seen as longer term and in essence falls
into the ‘nice to have’ rather than the ‘essential to have’ category.
5.2. Initiatives
5.2.1. Multi-currency payments on mobile
Initiative Category Scheme / Technical
Infrastructure Ease of Implementation Low
Impact High Proposed Timelines 2019-20
Current State
Not available.
Peer Practice
Making or receiving international remittances in a
foreign currency direct as m-money as in Kenya.
Using a Ghana e-wallet in another country either via
a Telco provider or attaching a credit card to a wallet
of using Visa Paywave or similar.
Actions/
Details
We recommend
That this is considered a longer term objective and an extension of intra-Ghana mobile
schemes.
This should be considered in the context of alternative emerging schemes such as interlinked
ATM/POS switches which could have a dependency.
Rationale Provides cross-border usage of m-money
Secure and convenient.
5.2.2. IBAN / Numbering
Initiative Category Governance / Scheme /
Technical Infrastructure Ease of Implementation Low
Impact High Proposed Timelines 2019-20
Current State
Local bank and Account numbering is adopted.
Peer Practice
The IBAN numbering scheme has been adopted as
a standard within the European Economic area and
is mandatory for SEPA Credit transfers and Direct
debit collections.
IBAN is mandatory in the UAE.
54
Actions/
Details
We recommend
That this is considered a longer term objective to standardise account number identification.
This should be an agenda item for WAMZ and adopted as a standard when national RTGS’s
are interlinked and where the benefits of standardisation would be accrued.
Monitor the benefits and issues in rolling this out, and learn from experience of the UAE and
UK.
Rationale
Enables the standardisation of Bank and account numbers for clients on an international
basis.
Reduction in errors, less repairs.
5.2.3. Enable NFC payments
Initiative Category Technical Infrastructure
Commercial Ease of Implementation Hard
Impact Low (depending on adoption
rates) Proposed Timelines 2019-20
Current State
NFC payments are being touted and heralded as
the “next big thing” in payments, however adoption
levels are low and technical problems with rolling
out the necessary infrastructure are strife.
However some niche-specific schemes such as
transportation cards, venue payments at concerts
and events etc, are being moderately successful
Peer Practice
UK Transport cards such as Oyster cards used on
London transport.
Barclaycard NFC enabled cards at POS and trials at
Retailers such as Boots (pharmacy chain)..
Voice of Stakeholder (NFC Payments)
Q: We asked whether BoG should rank the introduction
of NFC payments as important in the near, short or
medium term.
A: About 60% of respondents proposed to wait for the
medium term.
Actions/
Details
With respect to NFC, we recommend a “wait and see” approach. The costs of rolling out NFC
enabled infrastructure are so high that return on investment could be doubtful. There are
however opportunities for sector specific initiatives: e.g. transportation or large events.
Rationale High costs of NFC infrastructure
No real successful NFC payment implementations.
Near Term (6months)
Short Term -2014
Medium Term (2015-
17)
55
5.2.4. Account switching
Initiative Category Scheme Ease of Implementation Low
Impact High Proposed Timelines 2019-20
Current State
There is no switching service.
Peer Practice
UK: The new Current Account Switch Service
(seven day service) was launched on 16 September
2013. The system provides for central account
switching system and also a re-direction service.
EU: In May 2013, the EU published a proposal for a
Directive that includes account switching alongside
other programmes. The service would enable PCA
(Payment Current Accounts) switching to be made
simpler.
Voice of Stakeholder
Q: We asked stakeholders, when to adopt Account
switching initiative- in the near, medium or long term?
A: A little fewer than 50% felt that it should be a short
term initiative, while remaining earmarked it to be a
medium to long term initiative.
Actions/
Details
With high un-banked population, we believe switching enablement is a longer term priority.
BoG should debate the need for account number portability in addition to transferring regular
payments and funds. However this is probably too complex and doesn’t provide an adequate
ROI.
Rationale Switching enables competition and delivers choice to customers.
5.2.5. ISO 20022
Initiative Category Scheme Ease of Implementation Low
Impact Low to Medium Proposed Timelines 2019-20
Current State
SWIFT FIN ‘Y’ copy is the standard messaging
standard prevalent.
Peer Practice
EU: The SEPA initiative is built upon messages
based on XML standard enshrined in the ISO
20022.
SWIFT has published an adoption dashboard called
‘mApp’. As per the map 60+ initiatives are currently
underway (registered at www.ISO20022.org)
Account Switching
Near Term (6months)
Short Term (2014)
Medium Term (2015-
17)
Long Term (beyond
2017)
56
Voice of Stakeholder
Q: We asked stakeholders, when to adopt ISO20022 -
in the near, medium or long term?
A: A little over 50% felt that it should be a short term
initiative, while remaining earmarked it to be a medium
term initiative.
Actions/
Details
We recommend a “wait and watch” approach. We believe the current infrastructure is serving
well and ‘adoption’ is a core challenge than ‘refresh’. BoG can align the migration to peer
adoption in Africa, whether or not aligned with regional settlement schemes. Support from
SWIFT (i.e. Translation and mapping rules, machine readable standards definition, middleware
and interface products, training and implementation consultancy) may be utilized appropriately.
Rationale
High costs of change
May not be a priority for Ghana in the medium term. More immediate priorities of efficiency
and inclusion.
5.2.6. Separation of Scheme from Infrastructure
Initiative Category Scheme Ease of Implementation Medium
Impact Low to Medium Proposed Timelines 2019-20
Current State
There is no separation of scheme and infrastructure.
Definition and delivery is rolled into BoG and
GhIPSS (fully owned by BoG)
Scheme: A scheme is a set of rules, practices and
standards agreed between providers of payment
services.
Infrastructure: refer to the underlying delivery
systems and processing platforms.
Peer Practice
EU: With SEPA, the management of the schemes
will be separated from the processing infrastructure.
This will enable infrastructure providers to offer their
services to all payment service providers in SEPA.
For instance, card processors will be able to serve
different card schemes and acquirers throughout
SEPA. This will increase business opportunities and
competition for infrastructure providers.
Australia : The recommendations of RTPC-Real
time payments committee to the PSB- Payments
System Board included a clear recommendation of
scheme from Infrastructure
Actions/
Details
We believe payments business in Ghana is at least 5 years away from the need to separate
scheme from infrastructure.
Rationale
Long term stability and competition enablement.
Interoperability between providers enables standardization of services and value added
services (as a differentiator)
ISO 20022 messaging
Near Term (6months)
Short Term (2014)
Medium Term (2015-17)
Long Term (beyond
2017)
57
6. A Strategic Roadmap
6.1. Introduction
The intent of this section is to present graphically the roadmap from two perspectives and
answer to specific questions namely:-
What are the initiatives that will provide quick wins i.e. have a high level of impact, but are
low in complexity and thus relatively quick to implement in terms of effort?
What is the timeline that takes into account the dependencies of each initiative on each
other?
Section 6.2 describes in the form of matrices, the relationship of impact and effort required
for each of the main phases of the report from which quick wins can be identified. Overall
this maps onto the main phases described within the report and covers the specific initiatives
that are recommended during those phases i.e. what actions are to be taken to meet the
goals and principles that are to be agreed by the Payments council.
Section 6.3 describes the roadmap more from a high level implementation perspective
placing specific initiatives into the time periods stated in the presentation deck which would
map onto specific subcommittees within the payments council.
The Payments council itself would be the highest level of committee and would set itself
terms of reference and goals and objectives, a number of which would already be defined.
This would be defined in the Payment council’s constitution. A number of references are
given in Appendix 3 as to what other countries have done, but the South African example is
a good one to consider.
To organise, manage and regulate in relation to its Members all matters affecting payment instructions, including its Members' participation in the National Payments system, by –
adoption of a strategic focus on payments, including payment instruments and payment systems, whilst simultaneously aligning it to national strategy;
focusing on national interest, but simultaneously considering the influences, conditions and developments in the Southern African region and the rest of the world;
promoting international liaison and understanding of global developments in payments, payment instruments and payment systems;
promoting a safe and sound payment system;
focusing on the End-to-End Payment Value Chain and on the participants in such a process;
promoting transparency in the End-to-End Payment Value Chain, where
appropriate;
58
making and facilitating decisions in the payments industry;
guiding and supporting all participants in the NPS with reference to innovation within the Regulatory Framework of the NPS;
adopting and maintaining appropriate structures and frameworks for purposes of monitoring and governance;
promoting, proposing, supporting or opposing as may be deemed to be appropriate and expedient any proposed legislative or other measures affecting the interests of the Members and the NPS;
co-operating with other organisations or entities which are in existence or which may be established to deal with matters which affect PASA, its Members or the NPS;
creating a forum through which all Members can collectively voice and address issues of common interest and concern;
seeking direct representation on all forums which directly affect the Members; acting as a medium for communication by its Members with the South African
Government, the Reserve Bank, the Registrar of Banks, the Co-operative Bank Supervisors, the Registrar of Financial Institutions, any financial or other exchange, other public bodies, authorities and officials, the news media, the general public and other private associations and institutions;
doing such other lawful things as may appear to be in the interests of PASA, the NPS and its Members acting within the Regulatory Framework of the NPS and which are not inconsistent with the objectives or any matter specifically provided for in this constitution
The Payments council is the principal decision making body with a broad church of
membership for those who run the financial systems, provide financial services and
consumers of those services. This body would be principally concerned with Commercial
and Governance matters.
From this specific Schemes would be defined many of which would be existing schemes
such as National clearing or RTGS, which can be considered to be a foundation from which
enhancements can be delivered i.e. making better use of what is there and scheme rules
would be defined such as limits, operating times, service times. RBI guidelines as per the
National payment corporation of India are good examples as are the UK faster payments or
BACS scheme details. The scheme itself would be further defined through the sub-
committees i.e Operations, Pricing, Standards.
Pricing would cover such matters as maximum and minimum fees that banks can charge to
its customer segments, whether a service is a flat fee or ad-valorem based on the value of
the payment. Penal fees designed to incentivise the drive from cash to an cash-lite society
would also be within the remit.
Operations would focus on matters such as service times (e.g. UK Faster payments),
availability of the service (e.g. 24x7 or start/end of day cut off times, but also in how the
scheme will be operated and by whom. In Europe and a number of countries the Scheme is
separate from the operator and for the Single European Payment Area (SEPA) there are
multiple operators (PE-ach).
Standards would be set as to how banks and bank users for example would communicate
with each other such as ePOS, e-wallet payments, ACH direct credits, SWIFT FIN or MX.
59
The standards committee would ensure that standards are defined that meet the needs of
the payment system users (eg extended narratives for more effective accounts receivable
reconciliation as in ISO20022).
Of course this drives the need for automation, but what realistically should be automated to
best meet the needs of the stakeholders at a workable cost and under what operating model
as defined by the operations sub-committee.
The technology sub-committee would define the technology to be used to deliver the
solution including architecture leading to package selection and the Technical
infrastructure needed to operate the payment systems that will support the operation of the
scheme.
The Schemes and the constitution itself will require a legal framework to underpin its
operation and to enforce specific pricing or other aspects of its operation. The legal sub-
committee would concern itself with such matters. Consider the European Payments council
created the SEPA direct debit and credit transfer schemes and the Payment services
directive underpinned this and all payments between participants within the European
Economic area.
Change management will be required to inform enthuse and educate the stakeholders and
their customers on the benefits of the scheme and to manage the introduction and cutover
from old to enhanced, or completely new schemes. A great deal of planning will be required
to be done in this area. Responsibility for this can be within the operations and technology
sub-committees but accountability would be at the highest level as this is critical.
Exact implementation targets will need to be investigated in detail based on scope and effort
and priorities set by the Payments council after due consultation with the stakeholders.
On these charts some placeholders are shown for specific milestones in achieving a cash-
lite Ghana with a high level of financial inclusion. These milestones will need to be agreed by
the payments council and in all likelihood will include a series of interim milestones that can
be measured against realistic targets. As such a feedback improvement process and a
quality based metric approach will be beneficial to the success of this important national
programme.
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6.2. Quick wins by classification
Exhibit 11: Ghana Strategic Payments Roadmap: Laying the Foundation
Exhibit 12: Ghana Strategic Payments Roadmap: Making better use of what is already there
Implementation Effort
Str
ate
gic
Im
pa
ct
Low High
Lo
wH
igh
Governance Scheme Technical
Inf rastructure
Change
Management
Commercial
Ghana Payments Council
MFS Circular
Pricing Caps and Display
PoS Acceptance guidelines
Enable TSA regime
‘Cost of cash’ Index
Publish payments newsletters
Stakeholder Communication plan
Fraud and misuse reporting
NCA reachout
eMoneyRegulation
Security certification
epayments code and regulation
MoF Buy-in
Implementation Effort
Str
ate
gic
Im
pa
ct
Low High
Lo
wH
igh
Governance Scheme Technical
Inf rastructure
Change
Management
Commercial
Reinvigorate mobile payments
Value added services on current schemes
Employees paid electronically
E-Govt. initiatives
Hybrid or mobile Point Of Sale
PoS deal negotiation
ATM & Activity monitoring
EMV Cards
Supporting legal framework (WB)
ePaymentonly threshold
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Exhibit 13: Ghana Strategic Payments Roadmap: Building the Future
Implementation Effort
Str
ate
gic
Im
pa
ct
Low High
Lo
wH
igh
Governance Scheme Technical
Inf rastructure
Change
Management
Commercial
Instant Payment scheme
Bill Pay scheme
collaborative e-commerce scheme
Penal pricing for cash & paper
Re-launch Direct Debit scheme
Multi-functional Ghana Card
WAMZ - eftpos/ATM interlinking
WAMZ - RTGS interlinking
62
Exhibit 14: Ghana Strategic Payments Roadmap: Innovation 2019 and beyond
6.3. Roadmap by timescale
This section
Exhibit 15: Ghana: 5 year Payments Roadmap – Legal
There will need to be sanctions for non-compliance i.e. fines, for ‘sharp practice’ and an
independent ‘ombudsman’ or arbitration panel to resolve inter-bank disputes
Implementation Effort
Str
ate
gic
Im
pa
ct
Low High
Lo
wH
igh
Governance Scheme Technical
Inf rastructure
Change
Management
Commercial
IBAN / Numbering
NFC payments
Account Switching
ISO 20022
Separation of Scheme from Infrastructure
Recapitalise and commercialise GhIPSS stake in tranches in
favour of banks
Benefits / Guiding PrinciplesH1 2014 H2 2014 2015 2016 2017 2018
2019 Onwards
Step Stretch Leap
Pilot ‘Cash-lite Ghana’
Initiative
ePayments & Money Law (incl BoE,1961 updation)
MFS Circular
Pricing Caps & Display
circular
Enable ‘TSA’ regulation
Penal Pricing for cash & Paper
PoS & Acceptance guidelines
Ombudsman for Payments
Mobile as POS
Guidelines
E-payment only
threshold
Supporting laws – privacy, data protection
Firm up the framework
Early Signaling to stakeholders
Blend Carrot and Stick Approach
Enable jurisdiction sanctity
Enable customer protection
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Exhibit 16: Ghana: 5 year Payments Roadmap – Commercial & Governance
The payments council will be a forum for consultation but the BoG should have the final say
with a clearly understood role and mandate for schemes and standards.
Exhibit 17: Ghana: 5 year Payments Roadmap – Technical Infrastructure
Benefits / Guiding PrinciplesH12014 H22014 2015 2016 2017 2018
2019 Onwards
Step Stretch Leap
Pilot ‘Cash-lite Ghana’
Initiative
Launch Ghana
Payments
CouncilRecapitalise and commercialiseGhIPSS Stake
NCA- High Availability Bandwidth
Multi-bank cash handling
MoU with NSA (MFS)
Enable inclusive forums &
committees
Inclusive ownership & funding of
infrastructure
Co-develop backbone
infrastructure
Direct collaborative infrastructure
for cash
Benefits / Guiding Principles
PCI Compliance(PADSS,PCI-PED,PCI-DSS)
PoS deal negotiation
PoS Roll-out
PoS Roll-out(phase 2)
PoS density of >10/100k
Hybrid POS
Integration with other Infrastructures (African WAMZ)
Bank level PCI Compliance
EMV Cards
ATM & Activity monitoring
Enable Regional payments
alignment
Enable and ensure system
integrity
Trigger non-cash acceptance
infrastructure
H12014 H22014 2015 2016 2017 20182019
Onwards
Step Stretch Leap
Pilot ‘Cash-lite Ghana’
Initiative
64
Exhibit 18: Ghana: 5 year Payments Roadmap – Scheme
Exhibit 19: Ghana: 5 year Payments Roadmap – Change Management
Greater publicized BoG engagement and regulation/oversight will be a positive step to
enable change.
Benefits / Guiding Principles
H12014 H22014 2015 2016 2017 20182019
Onwards
Step Stretch Leap
Pilot ‘Cash-lite Ghana’
Initiative
Readiness for Cashless initiative
Spruce up as-is infrastructure
Set up Anti-fraud capability at
collaborative space
Enable Social Inclusion and next
generation payments through
power of ‘Mobile’ & e-commerce
Standardisation and competition
improvement
Launch GIP
Mandate mgmt
Bill Pay scheme
Standardize
Forms
USD/FCY
mobile
payments
Intraday
batches(CT,DD)
Advance submission
New - G2C /
B2C scheme
Uniform Account # policy
Account
Switching
enablement
ISO 20022
Cheque CAGR<2%
Anti-fraud tech
@ GhIPSS
Launch Mobile Scheme
RTGS lower limit
Fin Inclusion targets met
Reporting
NFC Payments
ePayment gateway
Separate
scheme &
Infrastructure
Benefits / Guiding Principles
H12014 H22014 2015 2016 2017 20182019
Onwards
Step Stretch Leap
Pilot ‘Cashless Ghana’
Initiative
Improve Awareness
‘Cost of
Cash’ Index
Multi-channel
Display & 1
minute guides
Improve awareness on dis-
benefits and costs of cash
Payments Newsletter
(Qtrly)
1-2 minute video’s
Fraud & mis-
use reporting
CashLesspilot
Campaign
Cashless - ongoing campaign
‘Cashless Ghana’ Initiative, targets met (Wave 1)
PSU transition to non-cash
Launch campaign to support
initiatives
E-Payments promotion through a
combination of education, training
and
65
Appendix 1: Methodology
An iterative and consultative approach was adopted to put together a strategic payments
roadmap for the Republic of Ghana. The details of the methodology across three phases are
as under:
Phase 1 -
As-is Baseline
An analysis of current state of payments in the Republic of Ghana was undertaken through
data collection on the economic, banking and payments indicators :
Financial and economic indicators
Current payments schemes
CAGR of payment schemes
Current pricing of payment schemes / products
Results of a prior survey by Bank of Ghana (early 2013) were also adopted for further
analysis and validation.
Phase 2 - Ideation Hypothesis on a range of payments solutions required for payments landscape
transformation were captured.
These were then benchmarked against similar initiatives designed and developed by other
leading countries like Australia, UK, India (from Outside Africa) and with Nigeria, Kenya,
Tanzania and South Africa (from within Africa)
A consolidated list of initiatives was thus customized for Ghana through discussions with
BoG / GhIPSS representatives. A questionnaire was developed to capture feedback from
various stakeholder groups (Bank of Ghana, Government Agencies e.g. Ministry of
Finance etc, Banks, Telcoa, corporate, retailers, etc)
Phase 3 -
Validation and
Feedback
The suggested initiatives along with good practices from other markets were presented in
a stakeholder workshop. Various inputs and feedback were captured. To also statistically
capture the feedback the questionnaire was administered. The survey results, feedback
and research (performed in the Ideation phase) have been blended to deliver this
payments roadmap for Ghana.
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Appendix 2: Abbreviations and Acronyms
Abbreviation Definition
ACH Automated Clearing House
ADB Asian Development Bank
AfDB African Development Bank
Airtel Bharti Airtel Limited is a leading global telecommunications company with operations in
countries across Asia and Africa headquartered in New Delhi, India
AML Anti Money Laundering
APCA Australia Payments Clearing Association
ATM Automated Teller Machine
B2B Business to Business
BAM Business Activity Monitoring
BAU Business As Usual
BB Branchless Banking
BCB Banco Central do Brasil (Brazil’s Central Bank)
BoG Bank of Ghana
BPAY Australia’s Bill PAYment service
C2B Customer to Business
CAGR Compound Annual Growth Rate
CapEx Capital Expenditure
CBK Central Bank of Kenya
CBN Central Bank of Nigeria
CCC Cheque Codeline Clearing
CCK Communications Commission of Kenya
CEO Chief Executive Officer
Chip and PIN Chip and PIN is the brand name adopted by the banking for the rollout of the EMV smart card
payment system for credit, debit and ATM cards. The word "Chip" refers to a computer chip
embedded in the smartcard; the word PIN refers to a Personal Identification Number that must
be supplied by the customer. "Chip and PIN" is also used in a generic sense to mean any EMV
smart card technology which relies on an embedded chip and a PIN
CIT Cash In Transit operators
CNP Card Not Present fraud
CRN Customer Reference Number
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Abbreviation Definition
CT Credit Transfer
CUP China Union Pay card
DD Direct Debit
DSS Data Security Standard
EAMZ East African Monetary Zone
EAPS East African Payment System
EBA European Banking Association
EBPP Electronic Bill Presentment and Payment
e-Documents Electronic Documents
EFT Electronic Funds Transfer
e-money Electronic Money
EMV EMV (stands for Europay, MasterCard and Visa) is a global security standard for chip card
technology
e-Payments Electronic Payments
EU European Union
e-zwich e-zwich is the brand name for the Ghana’s National Switch and Smart card payment system
FAQ Frequently Asked Question
FI Financial Institution
FPS Faster Payment Scheme
FTE Full Time Employees
GACH Ghana Automated Clearing House
GDP Gross Domestic Product
GHC Ghanian Cedi (ISO currency Code)
GhIPSS Ghana interbank Payment and Settlement Systems
gh-link gh-link™ is GhIPSS’ interbank switching and processing system which interconnects switches
of financial institutions and systems of third party institutions.
GIS Ghana Interbank Settlement system
GSM GSM (Global System for Mobile Communications, originally Group Spécial Mobile), is a
standard developed by the European Telecommunications Standards Institute (ETSI) to
describe protocols for second generation (2G) digital cellular networks used by mobile phones.
HVPS High Value Payment System
IB Internet Banking
IBAN International Bank Account Number
IMF International Monetary Fund
IMPS Immediate Payments Service (IMPS) in India offers an instant, 24X7, interbank electronic fund
transfer service through mobile phones
ISO International Organization for Standardization
68
Abbreviation Definition
ITMX Thailand’s Interbank Transaction Management and eXchange
KYC Know Your Customer
LVPS Low Value Payment System
MFS Mobile Financial Services
MHITS mHITs (Mobile Handset Initiated TransactionS) is an Australia micropayment service which
allows users to send and receive money via SMS
MICR Magnetic Ink Character Recognition
MNO Mobile Network Operator
MoF Ministry of Finance
MoU Memorandum of Understanding
m-Payment Mobile Payment
MPESA MPESA (M for mobile, PESA is Swahili for money) is a mobile-phone based money transfer
and microfinancing service for Safaricom and Vodacom, the largest mobile network operators
in Kenya and Tanzania
M-POS Mobile Point of Sale
MSC Merchant Service Charge
MTN MTN Group is a leading emerging markets mobile operator in countries across Africa and the
Middle East
NCA National Communication Authority of Ghana
NEFT National Electronic Funds Transfer system of India
NFC Near Field Communication
NIBSS Nigeria Inter-Bank Settlement System
NIP Nigerian NIBSS Instant Payments service
NPCI National Payments Corporation of India
NPS National Payment System
NPSC National Payment System Council
OpEx Operational Expenditure
OTC Over The Counter
P2P Person to Person
PAGA PAGA is Mobile Money Transfer Service in Nigeria
PCA Payment Current Account
PCI Payment Card Industry
PNDC Provisional National Defense Council
POS Point Of Sale
PSB Reserve Bank of Australia’s Payments System Board
PSP Payment Service Provider
PSS Payment and Settlement System
69
Abbreviation Definition
PTSA Payment Terminal Service Aggregator
Q&A Questions and Answers
QSA Qualified Security Assessor
RBA Reserve Bank of Australia
RBI Reserve Bank of India
RTGS Real Time Gross Settlement system
RTI Real Time Information
RTPC Australia’s Real Time Payment Committee
SEPA Single European Payments Area
Sh Kenyan Shilling
SIM Subscriber Identity Module
SME Small and Medium Enterprises
SMS Short Message Service
SWIFT Society for Worldwide Interbank Financial Telecommunication (SWIFT)
TARGET Trans-european Automated Real-time Gross settlement Express Transfer system
TAT Turn Around Time
TCRA Tanzania Communications Regulatory Authority
Telecos Telecommunication Companies
TiGO Millicom offers digital lifestyle products and services to emerging markets through service
brand TiGO, which is derived from the Spanish word ‘contigo’ meaning ‘with you’, in Latin
America and Africa to stay connected, primarily through their mobile devices
TISS Tanzania Interbank Settlement System
TSA Treasury Single Account
UAE United Arab Emirates
UK United Kingdom
VAS Value Added Service
Vocalink Operator of UK National Payments Infrastructure
WAMZ West African Monetary Zone
XML EXtensible Markup Language
ZAPP Vocalink’s Zapp is a new way to pay using mobile phone and existing bank account
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Appendix 3: References
Capgemini, Finance Transformation Benchmarking Study, 2005.
Capgemini, World Payments Report 2006, September 2006.
Capgemini, World Payments Report 2013, September 2013
PWC, Ghana Banking Survey, 2011
Lions go digital: The Internet’s transformative potential in Africa, Mckinsey Global
Institute November 2013
Population & Housing Census, Ghana Statistical Service, May 2012
M-Money Channel Distribution Case - Tanzania, International Financial Corporation,
World Bank Group
EBA Insight, April 2013
iDeal factsheet, http://www.currence.nl/Downloads/iD_factsheet_UK.pdf
Nigeria Payments systems http://www.nibss-plc.com/services/,
Tanzania payments statistics http://www.bot-tz.org/PaymentSystem/statistics.asp
Payments council articles and documents
South Africa (PASA)
http://www.pasa.org.za/Documents/PASA%20Constitution.pdf http://www.pasa.org.za/structure_council.html
Nigeria
http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020[v2].pdf (see page 39-45)
Tanzania https://www.bot-tz.org/PaymentSystem/Y2005Vjan2000.pdf (see page 18 onwards)
Kosovo
http://www.bqk-kos.org/repository/docs/SistemiIPagesave/TOR_NATIONAL_PAYMENT_COUNCIL.pdf
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UK
http://www.paymentscouncil.org,uk
European Payments council (EPC)
http://www.europeanpaymentscouncil.eu
India
http://npci.org.in
In collaboration with